Former Singapore prime minister, Lee Kuan Yew, who has been designated minister mentor of Singapore has suggested a four-pronged strategy for India to grow beyond the current 8-9 Percent rate of economic growth.
According to Lee, India needs to:
- First, cut down on redtapeism
- Second, provide greater incentives for the private sector
- Third, address the challenge of infrastructure shortage and;
- Finally liberalise foreign direct investment norms in the country.
Speaking at a dialogue session of the Singapore Symposium, jointly organized by the Confederation of Indian Industry (CII) and the Institute of South Asian Studies (iSAS), in New Delhi yesterday, Lee said greater liberalisation in FDI norms would allow India to shift its people out of agriculture into the industrial sector, which is essential for poverty reduction.
On infrastructure, he said, greater connectedness among Indian cities would be essential for economic development of the country.
Lee said while the economic cooperation between India and China may increase over the next few years, there was a little possibility of India overtaking China in its economic size.
He also ruled out the possibility of a border conflict between the two Asian giants in next 30 years.