A Seminar on Communal Harmony and Economic Development held recently by the Institute of Economic Studies, was inaugurated by Mr. Ramdas Athavale, Minister of Labour, Mahrashtra. The keynote speaker in the seminar was Prof. J. D. Agarwal, a financial expert and Director, Indian Institute of of Finance, New Delhi. The seminar was also addressed by padmashri Hom J H Taleyarkhan. Udyog Rattan Awards were also presented to selected industrialists in the seminar by Mr. Athavale.

Mr. Kulbir Singh, Executive Director, Institute of Economic Studies, welcomed the chief guest, the keynote speakers and the delegates of the conference. In his welcome address, he laid stress on communal harmony and economic development.

While delivering the speech as Chief Guest, Mr. Athavale emphasized the need for communal harmony for Economic Development. He also discussed the way in which the Government of Maharashtra endeavoured to bring back normalcy in the city of Bombay in the Post-riot period. Describing the riots and the consequential loss of human life and economic progress as unfortunate, he emphasized that for the economic development communal harmony is very essential.

While delivering the keynote speech, Prof. J D Agarwal compared the economic development which has taken place in India since independence, with that of other economies of the world. He spoke about the Japanese and German economic miracle and also the miracles which have been witnessed in South Korea, Hongkong, Singapore and some other economies of far-east and blamed the government for the wrong investment strategy and financial policies followed in the past which have resulted in the economic crises witnessed in the first half of 1991. Pointing out the external debt touching to eighty billion dollar mark he emphasized that the government should concentrate on the productive efficiency of the debt and use of future loans in the most efficient manner so as to generate the capability of the economy to earn more than the cost of the debt to facilitate the repayments and service obligation.

Prof. Agarwal appreciated the steps taken by the present government ever since it came to power. The economic reform and structural adjustments package, including the trade policy changes, import and export policy, fiscal policy reforms and financial reforms, launched are the need of the hour. According to him, government has taken a bold step and deserves congratulations and added that the Government should not stop at this stage but should continue with its philosophy of liberalising and pravatising India’s economy, the present government’s policy prescriptions have been the result of both conviction and compulsions in which the government was placed. The compelling factors, according to him, were the worst financial crisis witnessed in the early part of 1991. But besides the compelling factor, Prof. Agarwal felt that government was serious to meet the needs and aspirations of people. Accordingly the government had no option but to adopt the recent policy prescriptions. However, he emphasized the need for strict implementation of the economic reforms and structural adjustments package so that it may yield good results to boost economy and help people have better economic life.

According to Prof. Agarwal, communal harmony and peaceful atmosphere is necessary to achieve faster economic growth and sustained economic development. However, temporary problems created by communal disharmony or social disturbances should not effect the overall economic structure of economy. Communal and ethnic rift is often witnessed in different countries from time to time. These cannot take precedence over the total economic

philosophy of a country. While there is need to deal with the element creating disharmony firmly, the people and the government should engage itself in the process of economic development. Prof. Agarwal felt that there is a direct linkage between the economic prosperity and social tensions. Higher economic prosperity reduces social tensions and vice-versa. The small scale industries can make a useful contribution to bring economic prosperity and reduce social tensions stated Prof. Agarwal.

In the afternoon sessions the topic of the Seminar was the Role of small scale industries in export promotion. Dr. (Mrs.) J. Geetha Reddy, Minister of Tourism, Culture and Sports, Government of Andhra Pradesh, was the Chief Guest. The seminar was also addressed by Mr. Gulzar, Minister of Labour & Employment, Government of Punjab and Mr. Rajinder Kadan, Managing Director, Tata Limited, London.

While delivering the speech as Chief Guest, Dr. (Mrs.) Geetha Reddy said that the small scale industries have played the pivotal role in the promotion of exports. She emphasized the need for producing quality goods so that Made in India term is viewed with respect in foreign countries.

Dr. (Mrs.) Geetha Reddy appreciated the efforts put in by the Indians in various fields. Her remarks that she was proud to be born in India and be an Indian was applauded by the audience. She was all praise for the Institute of Economic Studies for giving away the awards to some women entrepreneurs for their contributions and excellence achieved in different spheres. She also appreciated the suggestion of Prof. Agarwal for commercial attaches at Indian High Commissions abroad to promote India’s business interests in foreign countries, be appointed.

Prof. Agarwal delivering Keynote speech applauded the efforts of small scale industries in production, generating employment opportunities and exports. He said that over 20 lac small scale units have contributed over 155,000 crores towards value of production and are responsible for employment of over 25 lac people. The small scale sector has also contributed over 9,100 crores worth of exports. Prof. Agarwal appreciated the efforts of government towards new policy measures for promoting and strengthening the small, tiny and village industries. However, he emphasized that the Government should reduce interest rates and carry out financial reforms to help small and tiny industries. He said that Commercial attaches should be picked up from the private sector with proper qualifications and experience in marketing and should help in identifying various products in different countries. They should maintain appropriate liaison with export houses and importers abroad to give thrust to India’s exports. He advocated for maintaining high standard of quality matching 150,9000. At the end of afternoon session awards were presented by Dr. Geetha Reddy and also released a book Accounting for Financial Analysis written by Prof. J.D. Agarwal, and published by Indian Institute of Finance, on the occcasion.

Some of the distinguished awardees included Dr. A C Shah, Chairman and Managing Director of Bank of Baroda, Shri R. Kadan of Tata Ltd., who received the award on behlaf of Shri Russi Mody, Chairman, TISCO, Shri Ramesh Bhargava of VXL Industries Ltd. Shri Nariman F Mogeralia of zoro Grements and others.

Mr. S L Yadav, President of IES, proposed a Vote of Thanks to the Speakers and the Chief Guest.

The IES Seminar on communal harmony and economic development, was given a wide coverage by the Media Bombay Doordarshan gave the Seminar enough prominence in their local news.