Inclusive growth not possible without inclusive governance: President

The biggest challenge before the Indian economy was ensuring inclusive growth but it cannot be attained without inclusive governance, President Pranab Mukherjee said Thursday.

"The biggest challenge is to ensure inclusive growth so that those in the margins are benefited from new initiatives and new opportunities coming out of globalization.

"But without inclusive governance, inclusive growth is not possible. Our primary goal is to achieve inclusive governance for an equitable economic growth," Mukherjee said at a programme here.

Terming as "remarkable" the changes which have taken place in the Indian economy over the past six decades, the president praised the rise in the literacy rate, foodgrain production and exports of rice and wheat.

He also described as "spectacular" the economic growth rate which rose from an average of one percent in the first half of the last century to an average 7.9 percent in the period 2003-04 and 2012-13.

"Our growth rate during 2003-04 and 2012-13 was second among all emerging economies, after China. Today we are the third largest economy in purchasing power parity," Mukherjee said while inaugurating a three-day international conference organised by the Institute of Chartered Accountants of India.

The president expressed concern over the downturn in recent years, tracing it to the 2008 slowdown and the subsequent Eurozone crisis, but hoped the economy would bounce back. "I have faith and confidence on the capability and resilience of the economy."

"I do hope with the adoption of effective policies and its proper implementation, it will be possible to overcome the problems."

Lauding the role played by chartered accountants, the president said they had a greater role to play during the economic slowdown.

"The current crisis has only reinforced their role in facilitating market discipline and fostering confidence in the financial markets," he said, noting that from providing the right advice to ensuring faith of investors, adhering to accounting standards and prudence in reporting, the CA has to be on his toes.

"I don't think the 2008 financial crisis would have happened if the right kind of advice was made available. The crisis was caused by the housing mortgage bubble in the USA.

"The right kind of advice that the bubble cannot be sustained over a period of time, perhaps could have prevented the crisis of 2008," he said.

Mukherjee said the accounting professionals should set high standards of professional behaviour and judgement and provide the true financial and non-financial information to all stakeholders while giving proper advice to the managements.