Economic integration challenges for sustainable growth: Tulsi Tanti at BRICS

Region needs to reestablish it’s prominence as a primary driver of the global economy

July 16, 2014 10:38 IST | India Infoline News Service

Tulsi Tanti, Chairman Suzlon Group delivered a speech yesterday on ‘Economic Integration – Challenges for Sustainable Growth’ at the BRICS Business Forum – July 14, 2014, Fortaleza, Brazil where he led the Business Council that represented the Indian business community.

Tanti laid emphasis on the relevance of the topic primary because of two reasons:

  • Region needs to reestablish it’s prominence as a primary driver of the global economy
  • World economy is currently in a state of uncertain growth and therefore BRICS have to look towards regional and domestic drivers for regaining and sustaining the growth momentum

The key highlights of the speech presented by Mr. Tanti are divided into five segments which are as follows:

Growth experience of the BRICS economies during the crisis period

  • BRICS has the potential to overtake G7 in the next ten years
  • Prolonged growth deceleration, the reversal of capital flows have led to equity market losses, currency depreciation and loss of business confidence exposing the vulnerability of the BRICS economy to sustain and grow as a region
  • Policy challenge for the BRICS region is how to sustain a rapid and economic growth driven by both external and domestic markets in a sustainable and more balanced way

Indian perspective and the influence it can have in shaping the sustainable development agenda of the BRICS

  • The Indian economy has begun to stabilize linked to voting of a stable and decisive government under the able leadership of Hon’ble Prime Minister Shri Narendra Modi  which has a clear focus towards affordable , accessible and sustainable energy for all
  • Indian budget presented recently has laid our measures to fast track economic revival and has laid down the road month map for reaching 7%-8% growth rate
  • The new government is also encouraging FDI across all sectors, massive investment in infrastructure, energy, renewable and manufacturing thereby stimulating both consumption and the investment cycle thereby boosting investor confidence
  • We strongly believe India can play a key role in advancing the agenda of the BRICS nations and help shape a framework for greater integration and sustainable growth of the region

India and BRICS Co-operation: Recommended five point agenda

  • BRICS nations need to promote ‘greater regional integration’ which is the key for job creation and for rapid sustainable growth
  • Set out a ‘clear agenda on sustainability’ as the cooperation and coordination by BRICS nations will act as a catalyst in achieving the Millennium Development Goals which is crucial for sustainable development
  • Strengthening of financial architecture and banking institutions to provide long term large scale funding for development projects including infrastructure of BRICS nations. Also called for an instruments that can help in mitigating country and currency risks leading to increased capital flow from the matured financial markets for the benefit of BRICS
  • Driving innovation and technology as Mr. Tanti is of the view that technology has an impact not just in driving economic growth but also has a big role to play to lift the bottom of the pyramid. BRICS leaders need to work towards creating conditions for technological collaborations and exchanges within the region that provides cost effective sustainable solutions addressing social and economic challenges
  • Shaping the global agenda through engagement and cooperation across various platforms such as G20, WTO, UNFCC, WHO on critical themes such as climate change, energy  and food security as well as geo political stability

Recommendations in certain areas of cooperation in business, trade and investment

  • Agriculture and food security
  • Infrastructure and Mining
  • Information technology, Biological Science, Space Exploration, Healthcare and Innovation
  • Energy Security & Sustainable Job Creation
  1. Energy is going to be the biggest sector of opportunities in the future, not in only clean energy sources but also in gas pipeline, shale gas, oil exploration, smart grids and nuclear energy efficiency
  2. BRICS economies are traversing the path of a new energy architecture embracing wind, solar and other forms of clean energy sources
  3. Many Indian and Chinese companies are now global players in providing the clean energy technology solutions for massive deployment. There exist specific opportunities for Russia, South Africa , Brazil to take the benefit of this if the clean energy market is opened up and BRICS companies are incentivized
  4. India can share its homegrown experience of wind energy  to the entire BRICS geographies

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