FM endorses models of Bhagwati and Sen

Amid a debate over rival growth models suggested by economists Amartya Sen and Jagdish Bhagwati, Finance Minister P Chidambaram on Monday endorsed both  saying these were equally important and emphasised the need to combine a passion for growth with compassion for the poor.

While Sen’s model advocates India should invest more in its social infrastructure, the model by Bhagwati argues a focus on growth can yield enough resources for investing in social sector schemes.

Chidambaram said the growth models should attack Narendra Modi government’s performance in health care.

Chidambaram said growth in the current financial year would move up to six per cent from five per cent in 2012-13. "Our best minds are trying to address the challenges," he said.

The growth rate would improve to seven per cent in the next financial year and eight per cent thereafter, he said.