India does remain a compelling growth story at 7.6 per cent but “there are concerns,” said H.R.
India does remain a compelling growth story at 7.6 per cent but “there are concerns,” said H.R. Khan, former deputy governor, investment is still sluggish, 70 per cent of the public sector units are not in a good position, corporate stress continues and debt servicing is a major problem and there is low demand.
Lack of demand means people are not participating in the economy and are outside the mainstream, he said speaking at the CII National Summit on Risk management.
People’s capacity to consume is reduced. Growth, he stressed needs resources, policies and institutions. India’s per capita is one of the lowest in the world and so is enrollment in schools and health facilities. People spend one-fourth of their income on health care.
Mr Khan suggested if the government officials send their children to government schools, the edcation system would see a dramatic improvement in these schools.
Agriculture and agricultural distress will create tremendous problems, he cautioned.
Speaking at the same summit, Dr Mukund Rajan, group executive council & brand custodian, Tata Sons in the Session on ‘strong corporate governance to enhance organisational brand and managing reputation risk’ said: “Corporates operate in an environment of significantly diminished trust. As a result of this diminished trust, citizens around the world are now holding corporates to account to a higher standard than in the past. Companies that skillfully tackle crises, learn from these, and invest in developing a culture of good governance, have a better chance of maintaining their image and reputation in adverse times.”
