Dr. Arvind Panagariya, chairman of the 16th Finance Commission of India, delivered an address at the Confederation of Indian Industry (CII) Annual Business Summit 2024 on Friday, highlighting significant strides in overcoming extreme poverty concentrated in rural areas.
Future of India's economic landscape
"Extreme poverty concentrated in rural areas has been largely conquered, and the growth prospects are excellent," said Panagariya during the plenary session on "Future of Economic Transformation: Integrating Rural and Urban Economies" at the CII Summit.
The summit, themed 'Co-creating the Future Responsibly: Role of Business,' brought together leaders and experts to discuss the future of India's economic landscape.
Panagariya emphasized the importance of creating pathways to integrate the rural workforce into larger enterprises and urban economies.
"It is important to create pathways for the movement of rural workers into larger enterprises and connect them to the urban space. To transform rural economies, it is important to enhance the productivity of the rural workforce by reallocating rural labour into other sectors, urbanizing rural habitats, and creating enterprises that are employment-intensive in rural India," he stated.
The summit also featured insights from Dr. Manoj Nardeosingh, Secretary General of the African and Asian Rural Development Organization.
Tech Transfer and Successful G20
Dr. Nardeosingh highlighted the increasing interest of African nations in India's development model, particularly following the successful G20 summit. He expressed a keen desire for Indian industries to invest in technology transfer to bolster rural economies across Africa.
Nardeo Singh quoted, "All countries on the African continent are looking towards India, especially after the success of the G20 summit. African nations are keen to invite the Indian industry to invest in technology transfer in rural areas, which comprise a large part of their economies." Dr. Nandini Rangaswamy, Chairperson and Founder Trustee of GRG Institutions, Coimbatore, and Managing Director of Chandra Group of Companies, Coimbatore, underscored the critical role of education in rural transformation.
She stressed the need for robust infrastructure and policy frameworks, alongside essential services such as healthcare, clean water, and technology, to improve the overall quality of life in rural areas.
Surabhi Yadav, co-founder of Sajhe Sapne, advocated for the ruralization of businesses. She emphasized fostering a sense of partnership between rural and urban economies to create sustainable growth.
The session focused on how India can stimulate its rural economy, making it a vibrant and dynamic contributor to national growth through innovative strategies, collaborative models, and supportive policy frameworks.
Setting the context for the summit, Sanjiv Puri, President Designate of CII, highlighted the significance of the rural economy. He pointed out that rural areas are crucial as sources of raw materials for food production and provide a young, dynamic workforce.
"The rural and urban economies need to grow synergistically for people to actualize their potential within the rural economy," he stated, emphasizing the potential for growth across agriculture, manufacturing, and services sectors.
