Editing Rural India (section)

== Five Challenges ==

Prime Minister Man-mohan Singh outlined five challenges, including improving financial system for global integration, for India to become a developed economy while cautioning that the rapid progress should not lead to complacency "It would be wrong to assume, as some do, that the major development challenges had been solved and that the Indian economy can effortlessly coast towards becoming a developed economy," Singh said while releasing "India rural infrastructure report" by economic think-tank NCAER. Despite a high level of public debt, inflation has been contained and "in brief the economic environment facing the private sector has been transformed and the results are evident," he said. Giving polic economy, improved delivery of public services, improved management of urban areas, preparing financial system for greater inclusion and increased global integration besides facilitating private investment in infrastructure, he said "we must not be complacent." He said rapid growth was needed to provide hope and productive employment for millions of young people joining the labour force each year and to accelerate the reduction of extreme poverty. The Prime Minister said it was heartening to note that growth process that began with the external sector and services, has now spread to manufacturing. Reiterating concern over the agriculture sector, Singh said agriculture would have to be redirected to higher-value activities to provide decent income to small farmers. Improved rural connectivity and economic and social infrastructure would be critical in this effort as well as removal of barriers to domestic trade, he said. Prime Minister also called upon the states to "experiment with a range of models" for delivery of basic education and health services considering affect on poor people. Referring to important but "expensive business" of urbanisation, he said, "our competitiveness as a nation will increasingly depend on the efficient functioning of our cities." Our challenge is to modernise the governance of our cities so they can generate the resources for their own growth and attract private financing in a stable environment, Singh remarked. Apparently referring to stiff opposition of Left parties against opening of financial sector. Prime Minister said extending its reach would be crucial for "permitting our small entrepreneurs and producers to realise their potential." "India stands to gain hugely from greater integration of its financial system with that of the • world, in a prudential way," he said. Emphasising on public-private sector partnership in infrastructure sector. Prime Minister called for establishing a credible regulatory regime. Investments will only materialise if there is confidence in the independence and stability of the regulatory regime, he said.