“India can reap the benefit of its demographic dividend and avoid it turning into a demographic liability by ensuring that every child can access quality education and stay in school for at least 10 years,” Chidambaram stated.
With respect to freshwater, he pointed out that India has enough precipitation, but not enough storage in terms of dams and reservoirs, and needs improved groundwater recharge. On the larger issue of climate change, the minister stated that, “India will play its part,” but the focus must be on reducing emissions in the developed world, which remain many times higher in GDP per capita terms.
Chidambaram was asked to elaborate on the reform of which he is most proud. “The major economic success, of which any government would be proud, is the average 8.6% growth over five years, as well as the acceptance that inclusive growth is an imperative for India,” he said.
Schwab agreed that the economic reforms have shown great success and asked Chidambaram for his views on which reforms need further progress. The minister pointed to two key areas of disappointment. The first is financial sector reform which has lagged behind (e.g. insurance, banking, pensions and capital market reform). The second is the existing systems of implementation, which he said have “tried and failed” to deliver outcomes, despite expanded outlays. He blamed rigid bureaucracies and a lack of innovation in delivery mechanisms for the disappointing results –pointing to an expanded use of public-private partnerships as part of the solution.
Concluding his formal remarks, Minister Chidambaram stressed that India's immediate task is to achieve the Millennium Development Goals. Like many countries, India is behind in some areas, and the global community that helped to set the dates and targets can still do much to help meet them.
Confederation of Indian Industry
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