With an aim to achieve aggregate growth, the Union minister for commerce, industry and civil aviation Suresh Prabhu has said India is working on district-based developmental model. For this, six districts have been selected in different parts of the country. Prabhu said if the national growth was at six per cent and those of the districts was four per cent, the aggregate growth would be 10 per cent. All put together, this will result in rise in India’s GDP and to complement that, the private sector should bring in investments.
The Minster further stated the industry has to bring in investment as service-led growth would not be sustainable, adding that the government is ready with a new industrial policy. Moreover, He underlined the country needs to integrate with the global economy and there is no reason why India’s exports volume should not touch $540 billion. This will only happen only by integrating with the global trade.
He said the two premier institutes - the IIM Ahmedabad and the NCAER - have been approached to fix the baseline. The first phase of the project has been completed. The second phase will include industry, services and agriculture. Besides, He also called for the restoration of the trade balance with China. India’s huge trade deficit with China would have to be corrected and a Chinese minister has been invited to discuss the issue.