_____________________________________

Friends,

I welcome all of you to this first meeting of the

Advisory Council on Trade & Industry.

This Council is about partnership and trust.

And building bridges between Industry and Government.

To understand your perceptions, to share our

views and interact with candour.

Not merely about what you expect from Government or Government expects from you.

But jointly embark on a course of action.

A course that will fulfil the underlying objectives I had outlined at the National Conference and Annual Session of the CII on the 28^th April namely, "To Together create a Mindset Revolution to Harmonise the Objectives of Economic Liberalisation and Social Liberalisation".

A lot has happened since the April meeting.

Several important initiatives have been taken like :

Initiatives in the Power sector and counter-guarantees for Fast Track Projects

New schemes announced in the Budget to resolve disputes

Some important legislations introduced in Parliament like, FEMA

A new National Housing Policy

Implementation of the Task Force on Information Technology

A credible Export Package.

But a lot remains to be done.

The Indian economy has inherent resilience and strength.

India, China and Taiwan will be among the few countries to show positive growth in the Asian region in 1998-99.

We have overcome the negative impact of sanctions.

The success of the Resurgent India Bonds was the demonstration of the faith which our NRIs have in the strength of our economy.

Seen in the context of a depressed world market, marked by economic crises in South East Asia, Japan and Russia, a GDP growth rate of around 6% with still single digit inflation, satisfactory agricultural output, stable reserves and signs of further industrial revival is by any reckoning no mean achievement.

But there is no room for complacency.

Not merely because we need to achieve much more but also because the international environment is becoming increasingly difficult and uncertain.

In this environment, we must work towards a SEVEN POINT approach for this Council.

First, there is need to rekindle the spirit of enterprise.

Indian entrepreneurs have excelled.

They are second to none.

We need to adopt measures which will dispel lingering fears and fortify confidence.

We must adopt measures which build optimism in our expectations.

Second, we must focus on a comprehensive strategy to deal with the debilitating impact of a global meltdown.

And to demonstrate that India has an attractive economic prospect for domestic and foreign investors.

Third, focus on measures which can enhance the productivity and competitiveness of Indian corporates to face the increasing challenges of globalisation.

Fourth, to focus on some immediate concerns.

Concerns which are in your mind and ours.

How do we get on to a higher growth path?

A path which will impart a new momentum.

Substantially increase investment in infrastructure

Lead to a revival of the capital market

Restructure public enterprises for greater efficiency and productivity while continuing the disinvestment process through a transparent mechanism

Fifth, to refreshen the Government’s Communication Strategy.

To enable not only timely fine-tuning of our policies to create awareness about our programmes.

But also monitor and ensure that the benefits of the development percolate to the grassroots for alleviating poverty.

Sixth, to invest and foster "Knowledge as an industry". Through investing in skills.

And in Human Resource Development.

And to improve the Quality of Life Index as contained in the World Development Report.

Finally, a strategy which can enable :

A GDP growth of 7% p.a. for the next 3 years and 8% thereafter;

Industrial growth of 10% p.a. is achievable next year and 12-13% thereafter;

Export to grow at 15 – 20% p.a. in dollar terms;

Policy leading to high employment with modest inflation.

This is a big agenda.

We need to organise ourselves purposefully.

And gainfully.

So that the Council can address issues both in generality and in sectors and segments which can enable us to move in this direction.

I have made some general observations and would request you to give your reactions not only on what needs to be done in the immediate future but also over a longer span.

And on the sort of issues and procedures which we need to adopt to optimise the benefits of your presence here.

The presence of some of India’s best entrepreneurs.

And whose presence we greatly value in this Council.

I look forward to hearing your views.