As we step into the second quarter of the current fiscal, there is an emerging consensus that our economy is doing very well in all its leading indicators. As a result, business confidence is at an all time high and there is a growing recognition about the inherent potential of our economy to reach higher echelons of growth and realize the vision of becoming a developed nation by 2020. The sterling first quarterly performance of the economy with GDP posting a robust 8.1% growth which is the best first quarter result in the last eight years has further reinforced this sentiment and rekindled hopes that the economic report card would continue to be impressive during the rest of this fiscal.

Having achieved a commendable economic performance, the next logical step, in my view, would be to prepare ourselves, preferably through suitable policy intervention, to take the economy on to the next level of growth. Unfortunately, our reform process is moving at a halting pace. Indeed, I find that from disinvestment to pension or labour law reform and easier norms for overseas investment, the progress is slow if not non-existent. I would say that we are fortunate that this girdlock in governance has not yet affected our economic performance. But the question is how far would our high growth numbers be sustained in the absence of a facilitative policy environment. I anticipate, that the lack of conducive investment climate would sooner or later, put a brake to progress.

I feel that we can no longer ignore the impelling need to develop a strong political consensus to implement the reforms in right earnest in order to stay ahead in this era of globalization. The reforms I have in mind are effective labour reforms, disinvestment of non strategic PSUs, infrastructure and power sector reforms and reforming central and state finances. Here I would like to add we have indeed attained much despite handcaps. But our latent capabilities are waiting to be tapped. Let us together unleash this tremendous potential by unfettering our economy and giving a free hand to reforms.

My emphasis on getting the reform process moving is also because of the danger signals which I foresee on the horizon. One relates to the global economic environment which has turned more hostile over the last year. Oil prices have risen and are likely to stay at this level, if not increase further. Besides, the recent hike in US interest rates could impact global capital inflows. And all this would have a significant impact on our economy. It is hence time for tough decisions and push for growth through reforms.

Let me say a few words on the Chamber activities and services to members. In our endeavour to serve the membership better and keeping in view the usefulness and interest of members many high profile programmes have been organized during the year. Details of the programmes organized since 1st January 2005 are given in the bulletin. Inspite of timely communication, wider and large participation from the membership is not forthcoming on many occasions. We are keen to have quality programmes wit wider participation from our membership. I am keen to have your views in this regard.

The month of November is packed with series of important events including a meeting with Mr. Vaclav Klaus, President of Czech Republic. The seminar on Good Governance shall be inaugurated by Dr. Montek Singh Ahluwalia, Dy. Chairman, Planning Commission and addressed by Mr. B.K.Chaturvedi, Cabinet Secretary, Dr. Abhishek .M.Singhvi, Senior Advocate, Supreme Court and Mr. S.Laxminarayanan, Secretary, Interstate Council.

To commemorate 100 years of PHDCCI, Government of India is releasing a commemorative Postage Stamp. Mr. Bhairon Singh Shekhavat, Hon'ble Vice President of India, will be releasing the stamp at a special function at PHD House in November. The prestigious Shriram Memorial Lecture will be delivered this year by Dr. Deepak Jain, Dean, Kellogg's School of Management. I look forward to your active participation in the forthcoming activities and events.

K. N Memani
President