Savings, governance key to growth, say experts

The Bangalore Branch of SIRC of the Institute of Chartered Accountants of India (ICAI) in association with Bangalore Chamber of Industry and Commerce (BCIC), on Tuesday, presented its “Analysis of Union Budget - 2011”.

The discussion, an annual event after Budget, took place in front of a packed house in Chowdiah Memorial Hall, Bangalore, consisting of BCIC members and chartered accountants.

The panelists included Toyota Kirloskar Motors Deputy Managing Director Shekar Viswanathan, who is also the BCIC president, Just Law Advocate S S Naganand, IIM-Bangalore faculty Rajeev Gowda and former Corporation Bank & ING Vysya Bank Chairman & MD K R Ramamoorthy.

The session began with Infosys Technologies Limited Director T V Mohandas Pai, who moderated the discussion, saying that India is the second largest economy after China, presently growing at 8.4 per cent. On the growth projections, Pai asked the panelists:
“Are we saving enough to grow at that rate?”

Viswanathan replied that people need to invest more than what they do at present and also called for developments in infrastructure, particularly roads, and added that certain institutional frameworks, besides money, need to be put in place, if further development is to be achieved.

As for the mind-boggling amount of black money in the system, Viswanathan said laws are in place but what is lacking is their enforcement.

“Democracy costs money,” said Gowda, adding that in the West, political contributions are legal and transparent.

People must contribute in the right way for the well-functioning of a democratic government, he affirmed.