Nation's drive to reduce poverty
India is addressing domestic imbalances by generating income opportunities and narrowing the wealth gap.
The liberalisation of the economy and the increasing integration of India with the global economy have helped raise GDP growth from about 6 per cent a decade ago to nearly 10 per cent last year.
Famed for its IT and outsourcing services, these days India is expanding in other directions by creating new wealth and opportunities for the less well off. Sectors where India is making rapid progress include manufacturing, shipbuilding, pharmaceuticals, aviation, biotechnology, tourism, nanotechnology, retailing and telecommunications.
'Around the country there is a tremendous energy,' says Gaddam Dharmendra, Consul General of India in Hong Kong. 'We are benefiting from a reverse brain drain as overseas migrants return to set up businesses and services. The decision makers are extremely conscious that development and economic growth need to be equitable and should contribute to social economic development that benefits everyone.'
M. Arunachalam, chairman of the Indian Chamber of Commerce in Hong Kong, agrees that India is making positive moves to reduce poverty. 'As India's economy continues to flourish, the rate that poverty is reduced will be accelerated,' he says. 'The massive infrastructure development throughout the country and innovative ways to make resources available to people in the lower economic strata are also aiding the process of reducing poverty levels.'
Arunachalam says India can maintain its economic growth. 'The vast English-speaking workforce is one of India's important strengths,' he says. In addition, the emergence of young entrepreneurs, who are willing to take risks, are creating widespread opportunities.'
Arunachalam says the success of the IT sector is due to strong encouragement from the Indian government. But he points out that such success is not the only factor contributing to the reduction in poverty. 'The IT sector employs about 3 to 3.5 million, which is a small section of the workforce compared to the 350 to 400 million employed in other sectors.'
According to Sudhir Dole, ICICI Bank CEO for Hong Kong and regional head of Asia, Middle East and Africa, the benefits of India's robust economy and growth strategies can also be seen in Hong Kong. 'ICICI Bank has been in Hong Kong for more than five years and [is] the largest Indian bank in Hong Kong,' he says. 'Our franchise is focused on being the 'gateway' for Indian companies as they expand internationally, as well as to finance Indian companies looking to finance their own infrastructure.'
He says being in Hong Kong has given the bank an increased understanding of the mainland market. During last year's visit to India by Premier Wen Jiabao, several Memorandums of Understanding (MOUs) were signed between Chinese and Indian companies.
There were two MOUs between ICBC and Shanghai Electric to finance Indian companies who were buying from Shanghai Electric. The second agreement was with China Development Bank to finance Indian companies buying equipment from the mainland.
