India celebrates 60 years of Independence this year. It is a very important milestone in the history of our nation. What is the message you would like to convey on this important occasion?
I shall begin by offering my greetings and good wishes to all members of the Indian community on the occasion of our completing 60 years of Independence. Our fathers, who gave us freedom, were driven by a sense of pride and justice. A determination to live proud and free. Through our collective endeavour, we have made considerable progress in various areas in the past six decades, and thus realise the dreams of the leaders of our freedom movement. We have safeguarded a plural democracy and unity when many of the opinion-makers and even leaders in the West thought that we would not succeed. Happily, we are also well on the road to tackling poverty, though we must also recognise that the road ahead is still long and hard.
Today global attention is focused on the rapid pace of economic growth in India, how is it to represent a country undergoing such transformation?
The economic growth in India over the past few years has been at about 9% and are now a trillion-dollar (US) economy. The economic transformation in India is clearly visible. The economic reforms begun in the early 1990’s have made this possible. Our global trade has been going up and India is viewed by other countries both as an expanding trade partner, and an attractive investment destination and, more recently, as a source of investment. An important feature of our economic growth has been that it is led by domestic consumption and investment, which provides stability to us even in the face of international economic uncertainty. Another unique feature is that the services sector contributes over two-thirds of our growth.
I have always felt honoured to represent my country abroad. In the current context of increased economic interest in India, our focus on economic diplomacy has also correspondingly increased. It certainly gives a sense of satisfaction to project a rapidly developing country which has emerged as a world leader in several areas, and where several of our domestic companies are becoming global players. Side by side, we have, of course, done well in strengthening our diplomatic and political ties around the world. This is specially true of the Asia Pacific region, where I have served in the last seven years. Our “Look East” policy has paid rich dividends.
India’s economy is on a high growth trajectory. In your opinion is this trend going to continue. If yes, how do you see India in next five years?
The economic growth of India is based on sound fundamentals. The economic growth is concomitant with growth and development in all related areas – banking and financial institutions, stock market, trade, communications, required legal and regulatory frameworks, etc.
We still have some way to go on infrastructure, with a requirement of over US$300 billion over the next Plan period. However, the Government is focussed on this area and has taken several measures to encourage private investment and public-private partnership in the infrastructure sector. If we can address the infrastructure requirements, of which we are confident, I expect the growth trend to continue, perhaps at an even higher rate.
HIGH COMMISSIONER SHUKLA COMPLETES HIS TERM IN AUSTRALIA
Mr Prabhat Prakesh Shukla, theHigh Commissioner for India to Australia will be completing his eventful tenure in Australia. He has been appointed as the next Ambassador of India to the Russian Federation. Smt. Sujatha Singh will be the next High Commissioner of India to Australia. Smt. Sujatha Singh, presently Joint Secretary in the Ministry of External Affairs, has been appointed as the next High Commissioner of India to Australia. . She is expected to take up her assignment shortly. |
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Agriculture is the other sector where we need to see more investment and faster growth. This has an important human dimension as well, since some 55% of the Indian population still derives its primary livelihood from agriculture. Our Government is focused on faster and more inclusive growth during the current Five Year Plan (2007-12). I visualise an India that is committed to continued economic and social development. I might mention some of the Plan targets – GDP growth rate of 10%, increase in farm sector output to 4%, reduction of educated unemployment rate to below 5%, electricity to all villages and clean drinking water for all by 2009.
Traditionally India and Australia have shared warm and friendly bilateral ties, which are new areas of cooperation being explored between the two nations to enhance cooperation?
Relations between India and Australia have developed rapidly in the last few years. There are frequent exchanges of visits at political level. Prime Minister Howard has visited India in 2000 and 2006. Our trade has been growing rapidly and was over A$ 8.6 billion last year. Our mutual investments have also been growing. The areas of energy, infrastructure, services sector, and food processing offer further opportunities for enhanced cooperation.
We are also discussing further enhancement of our defence cooperation. Cooperation in the area of sports is another area, particularly in the context of New Delhi Commonwealth Games to be held in 2010 and expertise of the Australian side in organizing sports events and in the area of sports infrastructure. Tourism between India and Australia has been growing but is far below its potential. Direct flights and simplification of visa procedures should contribute to increased tourist traffic. We expect Indian Airlines to start operations to Melbourne early next year.
Foreign investments to India have been on the rise. At the same time Indian companies have been making many overseas acquisitions. In your opinion what are the long-term implications of such trends?
In 2006-07, Foreign Direct Investment (FDI) in India exceeded foreign institutional investment for the first time. A liberal and transparent FDI policy has contributed to this. There are now very few constraints on investment in industrial, services and infrastructure sectors.
With a comfortable foreign currency reserves position and relaxation of norms on investment abroad, Indian companies have been increasingly investing and acquiring assets in other countries. This is particularly visible in the steel, pharmaceuticals, information technology, energy and resources sectors.
For example, India is now the second biggest source of investments into UK. This trend would enable our companies to become global, acquire newer markets and technological capabilities, increase the volume of their business leading to economy of operations, and of course increased trade and investments back into India.
You have been in Australia over three years. As you come to the end of your tenure, how would you describe your experience as the High Commissioner of India in Australia?
I have had a satisfying tenure here. I have seen an increased interest in India, both in the Australian Federal and State Governments as well as in the private sector. Our academic and cultural interaction has increased, contributing to greater people-to-people contacts. What this indicates is that there is a new agenda between our two countries, and the old baggage has been cast aside. Whether we talk of world trade or environmental issues, or UN reform, or even non-proliferation—there is a greater positivity than ever before. I also had good interaction with the Indian community in Australia. They have adapted well here, while maintaining their cultural linkages with India. By common consent, Indo-Australian ties have never been better, and are set fair to
continue to improve. |
