'Equitable Distribution of Growth Not Happening in India'

Prabhu Chawla was delivering an address on the topic ‘Creating a Balanced Business Model for People, Planet and Profit’ at the 33rd Annual National Management Convention

Published: 08th February 2014 08:15 AM  |   Last Updated: 08th February 2014 08:15 AM   |  A+A-


Though many Indians from the corporate world have found a place in the global billionaires’ list, the matter of concern is that how many people have been able to cross the below-poverty-line post economic reforms in the country, Prabhu Chawla, Editorial Director, The New Indian Express Group, said on Friday.

He was delivering a special address on the topic ‘Creating a Balanced Business Model for People, Planet and Profit’ at the 33rd Annual National Management Convention of the Kerala Management Association here.

Equitable distribution of growth is not happening in the country, he said.

“There is no balance between people, planet and profit in India. The real result of the past 20 years of reforms in the country was creation of wealth for the rich and filth for the poor. The corporate sector in the country enjoys tax benefits worth `5 lakh crore annually. In the last 10 years, the amount comes to `50 lakh crore. Though this much mercy was shown to the corporate sector, how much impact had happened via this for employment generation and poverty eradication is a subject that should be seriously discussed,” he said.

“Service sector contributes 55 per cent of GDP but it employs only 7 per cent of people, whereas the agriculture sector employs 57 per cent of people but its contribution of GDP is only 17 per cent. This is a sorry state as we depend more on outsourcing,” he said. “India is the only country where there is no long term capital gain tax for selling off shares. Whether we need more airports or schools is definitely a matter of concern,” he said.  Pointing out the need for skill development, Prabhu Chawla said the Indian corporate should contribute more towards this subject as it would benefit everyone.

“Politicians talk about opening more IITs and IIMs in the country. But setting up such an institute costs `5,000 crore and maximum 500 students could be educated there in a term. This calls for setting our priorities well. In India, half of the total aircraft belongs to individuals. After going through all the reforms in the past 20 years, the country has ultimately landed at 4 per cent growth rate, which was the rate in 1996. Every year `20,000 crore is being spent on aviation sector. But it is benefiting only a fraction of people,” he said. Urging people to develop an Indian role model, Chawla said that the approach of corporate CEOs that ‘everything in America is good’ should be changed.

“The US is the best example of imbalance between  people, planet and profit as everything they do is with a profit motive,” he added.

Stay up to date on all the latest Kochi news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp