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Higher GDP expansion needed to achieve inclusive growth: Kapil Sibal

PTI 19 Aug 2012, 14:58:34 IST
Mumbai, Aug 19: Union minister Kapil Sibal today said that the country must maintain higher GDP expansion of over eight percent if it were to achieve inclusive growth.

“India needs to maintain 8-9 pc growth to sustain investment in critical sectors like health and education. We can not have an inclusive growth with Hindu rate of growth,” Sibal said at an award function organised by CNBC-TV18 here.

Talking about criticism in public sphere about government policies and inaction, Sibal said, “There is a lot of criticism. The self-flagellation will destroy India. If the country itself was not sure about its own strengths, how would the outside world have confidence about the country”.

Sibal also stressed on the need to have more investments in education and healthcare, saying any nation wanting to be a superpower cannot afford to have investments under one percent of GDP in these two areas.

Ours is perhaps the only nation in the world where 80 percent of the investment in healthcare came from the private sector, he said.

Referring to the oft-quoted advantage of “demographic dividend”, Sibal said the country should be prepared for higher expenditure on ourselves in the next 10-15 years as all the gains of the demographic dividend would wear off with the population ageing.