LEGAL SYSTEM AND ECONOMIC GROWTH

TO RE-INSTILL THE TRUST AND CONFIDENCE OF GLOBAL CORPORATES, THE PERCEPTION REGARDING UNCERTAINTY IN THE INDIAN LEGAL SYSTEM NEEDS TO BE REMOVED

- Dr. Sanjeev Gemawat

“Respect the private sector as its contribution and congruity are key to economic revival and growth of the nation”

The engine of growth, economic development and prosperity of the nation is its private sector as it drives innovation, creates jobs, provides funds, takes entrepreneurial risks, builds competitiveness and pays the taxes that finances services and investment. The private sector generates 90 per cent of jobs, funds 60 per cent of all investments, provides more than 80 per cent of government revenues, and forms the backbone of the nation as it provides all essential services like banking, telecommunications, health and education.

Indisputably, for nation-building, the private sector needs to be encouraged and supported so that it can produce high and inclusive growth while still generating the profits needed to succeed and grow. In order to achieve economic growth, the private sector cannot act alone but needs the support of government and other institutions to develop policies and legislative framework which encourage entrepreneurship, innovation and wealth creation. Experience suggests that the private sector has not been able to give its full to the economy, possibly due to the hurdles it faces and the same gets reflected in the World Bank’s Doing Business rankings where despite our progress in overall ranking at 63, we have made insignificant headway in parameters such as Ease of Starting Business (rank 136) and Enforcing Contracts (rank 163).