Financial Daily from THE HINDU group of publications
Monday, Feb 16, 2004
Financial Daily from THE HINDU group of publications Monday, Feb 16, 2004 |
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Industry & Economy
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Economy `Urbanisation, lifestyle changes will drive growth' Our Bureau
Thiruvananthapuram , Feb. 15 FACTORS such as income growth, urbanisation and lifestyle changes are likely to drive economic growth in India over the next few years, according to Dr Rakesh Mohan, Deputy Governor, Reserve Bank of India. He made this observation while delivering a lecture on `India - Shape of things to come' at the Centre for Management Development in Thiruvananthapuram. For instance, rapid urbanisation in India will trigger an increase in demand for housing, which in turn will lead to the development of the mass consumer market and also trigger the growth of the country's organised retail sector. Similarly, changing lifestyles will lead to further growth in demand for basic processed foods, and also for the more sophisticated processed food products, Dr Mohan said. However, this process could be affected by `policy inhibitors' such as reservations for small-scale industries, rigid labour laws, problems in the food chain, issues related to the land market and so on. In the decade since the `liberalisation' process was initiated, the proportion of low-income households in India has gone down substantially and is set to decrease still further. However, as low-income households become a "minority", special care must be taken to ensure that the Government does not forget them, Dr Mohan said.
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