‘Unorganized sector will prevent economy from global cirsis’

TRICHY: R Vaidyanathan, former faculty from Indian Institute of Management (IIM) Bengaluru, on Friday, said that the vast unorganized sector will prevent Indian economy from global crises and added that the country will surpass China and other developed countries in the next two decades in terms of growth.
Delivering the C Rangarajan endowment lecture on ‘Global economic crisis and implications on India at National College Trichy (NCT)’, he said majority population in India is self-employed in the unorganized sector.He said that it is a myth that corporate sector is a major factor in the economy. Private corporate constitutes only 14% of net domestic product but non-corporate sector makes 50% of NDP, he added. Even in employment, 85% of the people are self-employed and contract labourers. The overall debts of developed countries like Britain, France and USA have shot up to alarming levels unlike India, he said it is due to gradual decline in household savings in developed nations. Siting reasons for the crisis in the western model economic, he said families have been nationalized and businesses have been privatized in these countries. This was also comprehended by collapse of family life where most children are born out of wedlock.