Date:20/09/2007 URL: http://www.thehindubusinessline.com/2007/09/20/stories/2007092052191000.htm

Back Nuclear deal: No intrusive inspections, says Minister

‘No compromise on country’s sovereignty’

Our Bureau

Chennai, Sept. 19 The Union Minister of State for Industries, Dr Ashwani Kumar, on Wednesday hailed the Indo-US nuclear deal as a “singular triumph of Indian diplomacy” and dismissed fears of compromise on India’s sovereignty as “pure bunkum”.

Speaking to journalists of The Hindu group of publications, Dr Kumar said that the deal would be very beneficial to India, and lead to the setting up of at least 20,000 MW of clean power generation.

Asked if the deal would result in swarms of inspectors from the US visiting India, he said that India was mature enough not to allow any intrusive inspection.

Asked to comment on the slowdown in industrial growth, as indicated by the July-figures of Index of Industrial Production, Dr Kumar said that the slowdown was temporary. It was a result of rupee appreciation, he said.

The effect of the recent concessions given to exporters would begin to tell positively upon the industry, he said, and added that he expected a revival in the next two months.

Growth fuel

Dr Kumar gave two reasons for his confidence over sustained high growth rates. First, he noted that in 2006-07, Indian banks had lent about Rs 28,000 crore, at least a third of which was for building physical infrastructure. Second, the effect of huge spends on social schemes would result in higher rural incomes. Both these factors would fuel growth, he said.

Later, speaking to Business Line on the sidelines of a seminar on logistics organised here by the Confederation of Indian Industry, Dr Kumar said that the rising crude oil prices was a matter of concern. He said that the Ministry of Petroleum was working out a scheme.

Skill challenge

At the seminar, the Minister observed that skill upgradation is the real challenge, especially for the logistics sector, to remove bottlenecks and bring down the cost of logistics infrastructure for Indian industries from the current 13 per cent of GDP to less than 10 per cent, as it is in Western economies.

He said the Government intended to create 1,500 centres of excellence across the country for various segments including logistics industry skills, and upgrade Industrial Training Institutes and other advanced learning centres.

The Minister said that India would remain the global supplier of skilled and semi-skilled labour force for the world till 2035. He said that the country has a huge labour arbitrage and can become a hub for manufacturing globally.