While the corporate sector which gobbles up the entire Foreign Direct Investment and 51 per cent of the lending by banks, its contribution to the country’s GDP is a mere 15 per cent, according to S Gurumurthy, leading chartered accountant and social activist.
“It is the 2,500 industrial clusters in the unorganised sector spread across the country from ludhiana to Kanyakumari and Morvi to Manipur which sustains the economy of the nation. But what they get in return is a mere 4 per cent of their loan requirements,” said Gurumurthy while delivering the inaugural bi-monthly lecture series on Indian economy organised by Hindustan Chamber of Commerce here on late Monday.
Gurumurthy, a much sought after corporate advisor, pointed out that one need not go to IITs or IIMs or any foreign management schools to devise and strategise Indian economy. “Economic policies of India could be formed only by those who has known the psyche of the Indian mind, especially the strong family bond existing in the country,” he said.
“The economics being taught in Indian schools and colleges were prepared by the westerners who were ignorant of the mind of the people in our country, especially those in the villages. Ours is a society in which the families take care of the aged, infirm and children. Instead of the Government, it is families which ensure the well being of the people in India. But in western countries, it is the Governments which take care of the families which has resulted in the destruction of families. Families are being nationalised by the Government even as Governments are getting privatised,” said Gurumurthy.
Commenting on the State of Indian economy, Gurumurthy said any economic reforms being planned by the Centre should be compatible with Indian thoughts.
“Our society and its people have concern about their near and dear ones. The top priority of Indians is to take care of the aged members and children of the family. This has led to an increase in the personal savings of individuals. They are not greedy and never stake their hard earned money on stocks. While more than 60 per cent of the US population are hooked to stock markets, only one per cent of the Indian population have stakes in the share market,” he said and added that a buoyant stock market is no sign of a strong economy.
Gurumurthy recounted the results of a recent survey held mong women teachers who teach economics and management in various colleges and universities in Tamil Nadu.
“More than 50 per cent said they prefer to save their money in banks. Real estate and housing was the second most preferred option while gold came a third. Only one per cent of the participants said they invest in stock markets. When asked why they prefer conventional saving routes even as they teach about the vast opportunities of stock markets, they told us that what is written in economic and management text books are only for examination purposes,” said Gurumurthy.