Tamil Nadu Finance Minister Palanivel Thiagarajan has asserted that India has the potential and opportunity to step up its engagement with global finance.  He was speaking on ‘The Future of the  Indian Economy’ at MBIFL on Sunday. “India is in a position to benefit from a global downturn. Though we will be somewhat affected, we will be able to position India, Indian talent and businesses on global economic platforms,” he said. He observed that the very notion of an economy was subject to interpretation. 

“Gross economy is a good indicator. A more important indicator is the Gini coefficient which is used to measure how desperate the outcomes within a society are. In  India, we find great variations in the Gini coefficient and if India’s average Gini coefficient is 44-45 per cent, we can assume that the higher the number the greater the disparity. The lower the number is more equal in society,” he added. 

He stated that the quality of an economy was more important than quantitative numbers. “Economies can be large or successful on multiple dimensions. But the point of progress should be inclusive,” he said. 
Talking about the policies of Central and State governments, he noted that the Centre’s policies were driven more by political considerations than an economic perspective. “Major investments focussed in Gujarat. Accumulation of assets, mainly ports and airports, by certain people raises concerns of crony capitalism,” he said.  

On the infrastructure investment policies of the Centre, he stated that most investors want to see harmony in society,  continuity of policy and rule of law. “The  Government should maintain constitutional values and make the judiciary conflict-free,” he added.