'India poised to become third largest economy'

Hyderabad, Apr 7: India is poised to become the third largest economy after US and China by 2035 in the rapidly globalised economy, Planning Commission Vice-Chairman Montek Singh Ahluwalia said today.

Making a transition to rapid strides, the country had registered 8.4 per cent growth in the last four years and set to increase 9-10 per cent during the 11th plan period, he said while delivering the sixth convocation address at the prestigious Indian School of Business here.

The rapid growth of the Indian economy was the result of successful policies initiated in the mid 1980's and accelerated in the 1990's, Dr Ahluwalia, former Director of the Independent Evaluation office at the International Monetary Fund, pointed out.

The Planning Commission was focussing on a policy environment to facilitate faster and inclusive growth at least in a reasonable measure during the 11th plan, he said, pointing out that high income in some parts of the economy would not suffice. The benefits of growth should percolate to poorer sections too, he added.

Identifying lack of quality infrastructure as the single biggest obstacle for rapid growth, he said the Union Government would focus on development of infrastructure in partnership with the private sector during the 11th plan period.

Priority would be accorded to health and education in the 11th plan, he said, adding though there were some outstanding success stories, the average standard of education in Indian universities was par below the mark and this needed to be changed for the country to compete in a highly competitive Knowledge society.

Going down the memory lane, he said, ''when I graduated in 1963, the country registered just two per cent growth. Now the country will grow more than four times faster than when I graduated.'' Pointing out that growth in agriculture sector had decelerated from 3.6 per cent during 1980-1996 to two per cent till 2003-04, he said the Centre intended to double the agriculutre growth rate to four per cent during the 11th plan.

Stressing the need for more non-farm activity in the rural areas to reduce the urban-rural divide in GDP growth, he said policies had to be oriented to connect the rural people with more urban activities without actually migrating to urban areas by promoting growth of more semi-urban towns.

Altogether 416 students were awarded certificates for the post graduate programme in Management at the School's sixth graduation ceremony by Dr Ahluwalia. ISB Dean Rammohan Rao said, ''it is a very special moment for us with 416 students of the class of 2007 graduating today. Our students have played a pivotal role in the progress of the school and the class of 2007 has shouldered its responsibility in an excellent manner. Grooming our students to take on leadership roles has been our significant strength. I am proud that in a short span of five years, the ISB has been successful in setting global benchmarks in education in India.'' At the ceremony, V Subramanian and Suneet Gupta were awarded the ISB scholars of Excellence Awards in recognition of their exceptional academic performance. The top 10 per cent of the class of 2007 made it to the Dean's list for their distinctive performance in various activities during the year of study.

Topper Subramanian said, ''I am taking back lot of confidence from the ISB. Ten years down the line when I review my career, the ISB will obviously be the turning point. The school gave me the right opportunities and the right platform for networking. It prepared me to face the real world and taught me the difference between success and failure.'' ISB Merit scholarships were awarded to 28 students, who had scored high marks. The first 20 students received a scholarship of Rs two lakh each and the remaining eight got Rs 1.5 lakh each.

UNI