NEW DELHI, 27 November 2006 — Ahead of the three-day India Economic Summit (IES), which began yesterday, Mohammed Ali Alabbar, chairman of Emaar Properties (a leading real estate company in UAE), said: “As summit supporters, the event serves as a platform for us to underscore our presence in the country and also reiterate our expectations and growth strategy.” Alabbar is co-chairing the summit, organized jointly by Geneva-based World Economic Forum (WEF) and Confederation of Indian Industry (CII). Inaugurated yesterday by Finance Minister P. Chidambaram, the summit is also being presided over by Reliance Industries Chairman Mukesh D. Ambani, TNT Chief Executive Officer Peter Bakker, SABMiller Chief Executive Graham Mackay, Infosys Technologies CEO and Managing Director Nandan M. Nilekani and KPMG International Chairman Michael Rake. Among the prominent Indian speakers at the summit is United Progressive Alliance Chairperson and Congress President Sonia Gandhi.
With it providing a forum to shape the country’s growth agenda, IES, in its 22nd year has brought together key decision makers from all sectors of the economy. Playing host to over 500 business, political and civil society leaders from 32 countries, the theme of this year’s IES is “India: Meeting New Expectations.”
On its part, Emaar has announced largest foreign direct investment worth $1billion in the Indian realty market. Besides, several real estate projects launched by Emaar in India include Hyderabad International Convention Center and master-planned residential community, the Boulder Hills, in Andhra Pradesh. Joint ventures being undertaken by Emaar include residential and commercial projects, special economic zones and IT parks in Punjab, Delhi NCR, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, West Bengal, Gujarat and Maharashtra. Also listed in Emaar’s plans are 10-15 luxury, 40-45 business hotels alongwith healthcare and education expansion plans.
“India’s long-term growth rate will depend on the interdependence of the global and domestic aspects of the economy and the nation’s ability to be self-reliant in managing its affairs and driving growth,” Alabbar said.
Deliberations during the summit are based on four themes: — state and national competitiveness, managing growth infrastructure, development and risk management. Besides, the six global risks critical to the future of India will be examined. The organizers will release a joint report — India@Risk, which examines the six global risks, including backlash against globalization, shortage of ground water, uncertainty over oil prices and their impact on the future of India. Health problems like HIV and TB the potential pitfalls of the demographic dividends are also being focused upon.
That India’s booming economic growth has attracted global attention is indicated by the response received to this year’s IES. “The tremendous response received from the global business participants — more than 200 overseas companies with over 350 CEO and board-level participants from 32 countries — is a clear reflection of the global business community’s increasing interest and growing confidence in India as an investment destination,” CII President R. Seshasayee said. “The number and the diversity of participants at IES continues to grow. There is a lot of interest about India among the international business community. This year, many Chinese and Japanese companies are participating, while participants from Vietnam will also be present,” Lee Howell, director for Asia at WEF, said.
The summit is taking place at a time when the Indian economy, driven by an unprecedented boom in consumerism and new investments, is growing at the rate of 8 percent a year.
Though India has been among the world’s fastest-growing economies for the past decade, more than 300 million still live in poverty. A key challenge for the policy makers is that of moving a substantial percentage of people dependent on agriculture into manufacturing and services and increasing farm productivity.