Pradeep Kothari, Executive Director, Pyrotech Electronics Private Ltd, recently apprised the students of Pacific Institute of Management, Faculty of Management Studies, Pacific University, Udaipur, about the current economic crisis that the nation faces , through a lecture on the ‘State of economy in India today’ recently.
The lecture was organised by Business Line Club in association with energy company Cairn India. BL Club aims to provide an interface between the industry and academia.
Kothari analysed the reasons for the growth rate slowing down in the last 10 years and pointed out that it was due to massive spending on the part of the Government without taking into account various economic indicators such as inflation, current account deficit and fiscal deficit.
He also said that there was an inherent mistake in the economic development model adopted by the Government for growth – it focused on skilled workers while ignoring the dominant unskilled labour force of the nation. He said in the beginning the model should have stressed more on manufacturing which would have led to prosperity of both the skilled and unskilled workers. Kothari said China, Taiwan and South Korea had successfully adopted this approach. Since the unskilled and marginal labour did not benefit as much as the skilled ones, they started raising voice for inclusive growth.
The internal factors of adopting a wrong economic model and unnecessary spending on the part of the Government along with external developments such as US policy, West Asia disturbances and Eurozone crisis led to the present-day economic crisis, according to Kothari.
Ayodhya Prasad Gaur, Deputy General Manager, Corporate Affairs, Cairn Ltd, also addressed the students and briefed them about Cairn Ltd. Also present were Mahima Birla, Associate Dean, Faculty of Management Studies, Pacific University and Harshita Shrimali, Deputy Director, Pacific Business School.