FDI inevitable, says FM

Union finance minister P Chidambaram said that foreign investment had become inevitable as it is the only way to create wealth and create employment opportunities.

Speaking after inaugurating the golden jubilee celebrations of Karnataka Law Society's Gogte College of Commerce in Belgaum on Friday, the FM said India did not have enough investment. It was hence tapping into the savings of other countries as foreign investment.

Chidambaram said that India had the potential to become an economic powerhouse and that India was already on the path to high growth.

He stated that over the last three years India had achieved an average growth rate of 7 per cent and the world had recognised the country's potential.

"Our voice is heard with respect in the world fora and there is need to keep up the trend up," he said. The FM said India needed to realise its potential in the next 15-20 years.

The finance minister regretted in India people were not united in the resolve to eradicate poverty.

"India is facing its worst enemy today - poverty, but it can overcome this scourge in the next few years. While countries smaller than India have overcome poverty, India has not been able to do so," he lamented.

He advocated compulsory education up to the age of 12, as illiteracy and high drop out rates were detrimental to the development of society.

Chidambaram informed that the Centre had sanctioned Rs 13,096 crore for education in 2004-2005 and of it Rs 5,155 crore had been earmarked for secondary and technical education.

In the present year Rs 18,337 crore had been sanctioned with Rs 5,801 crore going to secondary and technical education.