Address by
Mr K C Pant
Deputy Chairman, Planning Commission, Govt. of India

At the Special Plenary Session of 
"Thought Leadership Conference" Special Plenary
Date: 30 October 2003
Venue: Balayogi Hall, Parliament Library Building, Parliament House, New Delhi

Hon’ble Prime Minister, HRH the Prince of Wales, Mr Larson, Mr Rahul Bajaj, Lakshmi, Anand Mahindra, Excellencies and friends.

When Lakshmi came to me some weeks ago and discussed her plans to organise this Asian Summit on Youth Entrepreneurship & Employment the idea sounded attractive as it was based on her own experiences in fostering entrepreneurs in different parts of India. We have just seen what she has achieved in the last ten years. This is not he only feather in her cap. The presence of HRH Prince of Wales whose remarks reflected a sensitive concern for the jobless and the Prime Minister whose commitment to tackle the problem of unemployment and underemployment in this country is the driving force behind the efforts of the Planning Commission and the government. Their presence has lent grace and authority to this special plenary session.

The background paper prepared for this summit brings out the point that the high incidence of unemployment in the youth is a worldwide phenomenon. In India also the youth constitute about 59% of the total unemployed. Behind this bland statistics, however, lie the unutilised energy and unfulfilled aspirations of individual young men and women and their families. It is therefore of crucial importance to orient the overall economic environment in such a manner that everyone gets an opportunity to participate in it and benefit from it. The whole set of macro economic policies adopted by the government in the early 90s are aimed at unleashing the growth potential of the country in diverse economic activities. This period is witnessed the emergence of India as a force to reckon within the field of software development and information technology. The educated and skilled youth of the country have taken advantage of the opportunities that came their way and have been the driving force behind the success. Government has played its role by providing the right kind of policy regime conducive to unhindered development of the sector. This is but an example of the policies and programmes being pursued by the government to gainfully engage the youth labour force of the country in the most productive manner possible. On the whole given the magnitude of the problem its solution cannot be found in the limited capacity of the government in the organised sector to absorb labour. Hence we have to facilitate the generation of new work opportunities in other sectors. In the 10^th five-year plan therefore the following initiatives have been contemplated. To give a boost to agriculture and allied activities, food processing, rural non-farm industries, small and medium enterprises the service sector and other activities where youth can be gainfully absorbed.

1. Reforming development financial institutions for long term financing of small and medium enterprises.

2. Policy reforms for small and village industries to be given priority.

3. Integrated inter-sectoral investment plan for tourism

4. Private participation in provision of municipal services

However preparing the youth today to take advantage of the new opportunities in the emerging activities would require a special emphasise on creating an entrepreneurial base which can reach into areas as yet untouched by the developments. The skills required for entrepreneurship go beyond literacy and enumeracy. Skills in the physical production of goods and services and organisational skills are essential. The farmers require vocational training and upgradation. The vocational training infrastructure in place has to be responsive to the needs of the market. Co-operation with local industry and industry associations is necessary to make the vocational training system more geared to the needs of the industry. Similar networking has to be done in the agricultural sector. But more important, perhaps, is the inculcation of the intangible attribute of organisational ability. The rudiments can, no doubt be taught but careful nurturing is essential for it to grow to full maturity. The mentorship model we just put before you could be tried out for this purpose wherever feasible.

In my remarks yesterday I briefly mentioned some of the components which are necessary to promote entrepreneurship. Today I would like to highlight a few of the steps taken by the government to provide some of the basic infrastructural facilities which are necessary to support entrepreneurial activities.

The massive highway development programme and the Prime Minister Gram Sadak Yojana will remove one of the fundamental obstacles in the way of growth of enterprises i.e. lack of proper connectivity especially in the rural areas. Rural electrification finds a place in the priority agenda of the government. Optic fibres, radio waves and satellites to extend the reach of telecommunication to every nook and corner of this vast country. All these will open up new vistas to young entrepreneurs under the relevant policies of the government to corporate sector and NGOs as specified by the report of the high level consultative committee. While government is doing its best to promote self-employment and entrepreneurship within its physical constraints we welcome the contribution of the corporate sector and NGOs in this national effort, we shall be shortly coming out with the national policy on the voluntary sector in which the nature and role of public-private partnership will be clearly delineated. I am confident that the conclusions and recommendations of this summit will be an important input in designing policies and programmes for the promotion of youth entrepreneurship and employment.

Thank you.

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