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Continued policy reforms essential for sustained economic growth

24 May '07

3 min read

Continued policy reforms and institutional development are a sine qua non for sustained economic growth in India. In his opening statement on behalf of India, at the World Trade Organisation (WTO)'s Trade Policy Review for India, to be held in Genera from 23-25 May, 2007, Shri G.K. Pillai, Commerce Secretary, said: “We are of the view that continued and sustained growth of the Indian economy is not only good for India but also for the rest of the world."

We also believe that in a more integrated global economy, it is necessary that other less developed countries also grow significantly so that they are able to get the benefits of globalization. The Government of India is acutely aware that there is no inevitability of high growth and that sustained rapid growth cannot be taken for granted.

For sustained economic growth, there is need for continual reform as well as a matrix of institutions and public policies tailored to the new needs of the economy. As brought out in the trade policy report, a slew of policy reforms have indeed been implemented over the last decade.

"There have been changes of Government over the last fifteen years, however, the momentum of economic reforms has not abated.In a vibrant and complex democracy such as India, the reform process can and will have some fits and starts but the overall direction of the Indian economic reforms has always been positive."

Referring to non-tariff barriers to imports from developing countries, the statement said that non-tariff barriers in the form of restrictive regulations were impediments that significantly affected not only exports but also the capacity to trade and as a result, even after more than two decades of rapid trade growth, the pattern of trade remained highly skewed in favour of the developed world.

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