ESCAP projects 9% growth for India in 2007

New Delhi, Apr 18 (UNI) The flagship report of ESCAP released here today projects India to grow at a rate of nine per cent in fiscal 2007, but warns that inflation is a 'genuine' downside risk and low social indicators, like phemomenally high gender inequality, a cause of worry.

The report is of the view that this high level of growth is sustainable and is under-pinned by strong performance of the industrial and services sector. It notes that the government targets a growth rate of ten per cent in the coming years.

It says India is less reliant than many other countries on export for growth. Domestic demand is important for promoting economic growth in India. Private consumption is by far the largest contributor, with a stable share over the last 25 years and a large contributor to GDP growth.

The report was launched here jointly by UNESCAP Executive Secretary Kim Hak Su and Commerce and Industry Minister Kamal Nath.

Mr Su gave a detailed assessment of the performance of the economies of the Asia-Pacific region and attempts at regional integration.

Mr Nath lauded the high quality of the report and its independent analysis and highighted the fact of relative insulation of the Indian economy from a possible global slowdown, unlike the case of China and Japan.

Mr Su said the fulcrum of future economic activity would shift to Asia and at present the region contributes to one-third of the global output.

The survey proposes several specific recommendations in four critical dimensions---economic participation, education, health and empowerment. It recommends provision of free primary education, addressing safety and privacy concerns and provision of scholarship for girls. Governments should improve health services for women and involve NGOs and civil society organisations to improve health outcomes. They should ensure that women are not discriminated against in recruitment, wages or promotions. The Public Sector should be a model for private sector.

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