MUMBAI: India is set to become a global leader in technology services as software companies move up in the value chain, while the weak dollar has hurt the US economic recovery, the Chairman and CEO of business publisher Forbes said on Saturday. "You have to make the distinction between pumping in money in immediate emergency response to the near collapse of the financial system and when the immediate crisis is over," Steve Forbes, 62, said, when asked what he made of the US government's response to the worst global economic crisis since the Great Depression. "This year I think the US government has made a number of mistakes that has slowed the recovery. They've not reduced taxes ... in terms of the dollar, they have not stabilised the dollar. They've weakened the dollar which hurts business investments, hurts the flow of capital and small businesses," he said. "So the government is prolonging the crisis - we should have had a strong recovery instead," Forbes said, adding that not enough was being done for job creation.
The pace of economic growth in India proved that the country was able to weather the crisis well - but the government would have to work to make the economy grow further, he said.
The Indian economy rose 6.7 per cent in 2008/09, while it is expected to rise 6 per cent in the current fiscal year. "India should continue the liberalisation that began in 1991, including simplifying the tax code and reducing tax rates, and allowing more overseas investments into India," he said. He said the bureaucratic procedures should be simplified to facilitate entrepreneurs. "One step - done!" India also needed to reduce the hurdles to building infrastructure, he said.
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