BIZ-PRABHU-GROWTH

The government wants to focus on

the districts as part of a bottoms-up approach for boosting

growth, industry minister Suresh Prabhu said here Saturday.

The idea is to focus on one district at a time and

increase its GDP growth by 3-4 percentage points annually,

which will help increase the national GDP, the minister said

speaking at an Association of National Exchanges Members of

India event here.

Accordingly, the government has identified six

districts, mapped its baseline of their economy with help from

reputed bodies like IIM and NCAER and then work on specifics

to increase their economic output.

"We've been focusing on the macro all these while, and

while that continues, now we feel the need to also have the

micro or the bottom," said Prabhu, who also heads the commerce

and aviation ministries.

He said the chosen districts are in Maharashtra,

Andhra Pradesh, Bihar, Himachal Pradesh, and Uttar Pradesh,

and these districts will get special attention in ease of

doing business.

The minister said it is now a certainty that the USD

2.6-trillion economy will scale the USD 5-trillion mount over

the next seven-nine years, and touch the USD 10 trillion-mark

by the turn of 2035.

The measures being undertaken to push growth at

district level are aimed at achieving this higher target

earlier, he said, adding there will be a launch event in the

financial capital next Tuesday regarding the same.

Prabhu said the country is now targeting to increase

the annual FDI inflows to USD 100 billion.

The government has identified the sectors which can

attract investments and has prepared a list of 150 companies

sitting with huge cash balance which will be targeted to get

investments, he said.

He said a vibrant capital market is essential both for

mobilising capital as well as make it work effectively, such

that it delivers the maximum returns for the economy.

The minister also assured government help to ensure

that the capital markets keep performing better.

Prabhu said it is one of the most challenging times

for global trade and we'll have to increase our focus on

services and merchandise exports and that government has asked

Exim Bank to undertake an analysis both from a product as well

a geographical perspective to increase exports.

Addressing the event, a top Anmi functionary flagged

taxation issues being faced by investors, terming it as a

price for transparency which domestic investors have to play

and sought to be heard as government is currently preparing

the direct tax code.

M Damodaran, a former Sebi chairman, said he has

reservations on self-regulatory organisations and pointed to

the lack of success on this front at the chartered

accountants, medicines and the legal profession.