Dr. L K Malhotra President, PHD Chamber said that to revitalize the economy, new strategies and initiatives have to be evolved to respond effectively to the development needs of the nation.

In his 61st Independence Day message, Dr. Malhotra said, “I strongly believe that in order to rev up the economy, we need to work out strategies and initiatives that can respond effectively to the downside risks arising out of uncertain domestic and external environment. We need to press for a fresh burst of reforms, which will tackle both economic slowdown and rising inflation”.

Specifically referring to the financial sector reforms, PHD Chamber President said that the FDI cap in insurance should be raised from 26% to 49%.  Also, the government stake in public sector banks should be diluted below 50%.  There is also a pressing need for undertaking pension reforms, public sector disinvestment, infrastructure development and reforms in agriculture and rural development.

Dr Malhotra expressed his concern about the break up of the Doha Round of negotiations owing to polarization of stands by the developed and the developing world on special product and safeguard measures (SSM).  The SSM provision was built to the Doha Round of discussion held in 2001 and was designed to allow the developing countries to impose higher duties on their vulnerable products specially the products affecting the livelihoods of subsistence farmers and effecting food security of the nation.  “I agree with the country’s position that it is not in our interest to push for any meaningful progress unless the hurdles are removed and the concerns of developing countries are taken on board”, Dr, Malhotra added.

The uncertainty in the global market, arising out of high food and fuel prices, has worked its way to adversely affect the industry and economy. There is an emerging consensus that the economy is likely to experience a moderate slow down this year owing to various external and domestic factors. Not surprisingly, global credit rating agency, Fitch, has revised India's local currency outlook from stable to negative and Moody’s has indicated that the economy is not in the right growth mood this year.

Dr Malhotra referred to the positive developments in the Indian economic landscape, which has helped the nation to achieve stupendous economic progress in the recent years. “We have emerged as a nation on the move and are no longer content with a third world status. We have worked towards and succeeded in securing a larger share in global economic pie. No wonder, globally, India commands a new respect today and is increasingly been seen as part of a new world axis of economic powers of the world… Not the least, the coveted achievement of young Abhinav Bindra winning the first ever individual Olympic gold for India is an icing on the cake”, he added.