News: India in developed nations' league by '20
(BS 04/05/2006) New Delhi - Finance minister P Chidambaram feels India would join the league of developed nations in less than 14 years and the country’s services exports would touch $150 billion by the end of the decade.
“It has taken India 14 years to evolve from a poor and perhaps forgotten country to a thriving and increasingly noticed emerging economy. I am confident it would take us much shorter than 14 years to join the league of developed nations,” Chidambaram said at the “Advantage India” session of the ongoing Asian Development Bank annual meeting here today.
The country has emerged as the second most attractive investment destination among transnational corporations, the finance minister said that one half of the multinational companies earned higher returns in India than their global average.
“I understand that all the European and American banks operating in India are more profitable here than their global average,” Chidambaram said.
The finance minister also spoke about the second and much bigger wave of manufacturing offshoring that was yet to come. The first wave consisted mostly of labour intensive items. “The second wave, just beginning, could reach $1.6 trillion annually and would consist of skill intensive manufacturing. This would work to India’s advantage,” he said.
Explaining what made the world to take notice of India, Chidambaram said that India’s GDP growth rate in the last 15 years ranked among the top six in the world growth league and the country’s growth in terms of purchasing power parity (PPP) was among the top four.
According to one estimate, he said, by 2025 there could be more than 200 million new people in the country earning incomes above $15,000. The 25-30 per cent annual growth in services exports would continue in the next six years and the “invisible” exports would account for $150 billion.
Referring to the advantages of India, the finance minister pointed out that the cost of doing clinical research in the country would be 40% to 60% lower than in developed countries. Since clinical trials comprised around 70% of the total costs of a new drug, using India could bring down the average cost of $ 800 million for a new drug development by around $ 200- 250 million.
“It has taken India 14 years to evolve from a poor and perhaps forgotten country to a thriving and increasingly noticed emerging economy. I am confident it would take us much shorter than 14 years to join the league of developed nations,” Chidambaram said at the “Advantage India” session of the ongoing Asian Development Bank annual meeting here today.
The country has emerged as the second most attractive investment destination among transnational corporations, the finance minister said that one half of the multinational companies earned higher returns in India than their global average.
“I understand that all the European and American banks operating in India are more profitable here than their global average,” Chidambaram said.
The finance minister also spoke about the second and much bigger wave of manufacturing offshoring that was yet to come. The first wave consisted mostly of labour intensive items. “The second wave, just beginning, could reach $1.6 trillion annually and would consist of skill intensive manufacturing. This would work to India’s advantage,” he said.
Explaining what made the world to take notice of India, Chidambaram said that India’s GDP growth rate in the last 15 years ranked among the top six in the world growth league and the country’s growth in terms of purchasing power parity (PPP) was among the top four.
According to one estimate, he said, by 2025 there could be more than 200 million new people in the country earning incomes above $15,000. The 25-30 per cent annual growth in services exports would continue in the next six years and the “invisible” exports would account for $150 billion.
Referring to the advantages of India, the finance minister pointed out that the cost of doing clinical research in the country would be 40% to 60% lower than in developed countries. Since clinical trials comprised around 70% of the total costs of a new drug, using India could bring down the average cost of $ 800 million for a new drug development by around $ 200- 250 million.
posted by InCar Group Press Room at 16:02
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