Nobel laureate and noted economist Joseph E Stiglitz today said that India has the ability to grow at a faster rate, but it needs to focus on solving issues related to infrastructure, inequality, education and agriculture.
Addressing students at Azim Premji Institute in Bangalore, Mr Stiglitz, known to be a sharp critic of Wall Street, said that although the global slowdown could affect India in the short term, it's good that the country is less dependent on exports.
"There is enough entrepreneurship in India ... and I am not sure what foreign retail companies can really bring into India," he said, adding that FDI in retail could affect internal supply chain logistics as it will leverage external chain logistics.
Mr Stiglitz also warned on privatization of coal mines in India, saying it will further increase inequality.
Touching global issues, he said the euro zone crisis is not over and that there is a significant chance that it could flare up again. On the economic situation in the US, he said that irrespective of what happens with the 'fiscal cliff', the US economy will surely see slow and moderate growth in 2013.
"Uncertainty over 'fiscal cliff' will have a dampener effect on the US economy," he added. "Many issues are yet to be resolved, especially the one on debt ceiling."
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