real lending rates almost halved to around 3. 7 per cent during the post - crisis period ( table 6 ). despite lower real interest rates, investment has slackened reflecting the role of non - monetary factors in the growth slowdown. while the heightened uncertainties following the eurozone crisis could have dampened investment climate, the slowdown in investment could have been partly driven by the high inflation environment itself. thus, what is desirable is a low real interest rate environment as an outcome of a low inflation environment for promoting investment and growth. concurrently, as highlighted in the rbi annual report for 2011 – 12, there is a need to address other constraints to investment, such as domestic policy uncertainties and structural impediments in the infrastructure space. challenges ahead let me now turn to some of the challenges for the indian economy to regain the growth momentum. first, as the past - experience suggests, rule - based fiscal policy becomes absolutely important to afford the space for monetary policy to contribute to the improved macroeconomic performance. fiscal prudence is also required to alleviate the resource constraints by boosting domestic saving crucial for raising domestic investment rate. second, monetary policy needs to focus on containing inflation and anchoring inflation expectations. this is essential to usher in a low interest rate environment which is crucial for raising the overall investment. third, there is a need to increase agricultural productivity and improve supply elasticities. without adequate agricultural supplies, inflation management is going to be a difficult task, given the transition of a significant part of the population into the consumption stream. fourth, lower household financial saving as observed over the last two years can pose a resource constraint for growth in coming years. it could be due to several factors, viz., entrenchment of household consumption levels, persistently high inflation and consequent lower real return on financial assets, and increasing popularity of gold as an investment option. therefore, control of inflation and improving the real return on financial assets become important so that growth prospects do not suffer due to inadequate supply of domestic saving. fifth, the current account deficit, recorded at historically high of 4. 2 per cent in 2011 – 12 is not only unsustainable but also does not augur well for growth potential of the economy. increasing vulnerability of india ’ s external sector can deter confidence of global investors and impair financial flows required to meet the domestic saving - investment gap. therefore, there bis central bankers ’ speeches is a need to improve competitiveness of the domestic economy while ensuring

also be key in raising public awareness on the need for continuous innovation among our youths. as you are aware, the engine of the fast growing economies such as china and india is the innovation and creativity of the young entrepreneurs in those economies. it is incumbent upon us therefore to also encourage our youths to take up their rightful place and contribute to the country ’ s development. furthermore, banks and financial institutions in zambia have in the past lamented the low levels of banking and economic knowledge among graduates from tertiary institutions as well as the borrowing public in general. it is therefore gratifying to note that this evening, we celebrate and showcase the depth of the entrepreneurial talent that is flourishing in our schools of higher learning. it is also heartening to see these young men and women putting up high quality business proposals of a diverse range of projects. this speaks well for the inventiveness of our learning institutions and is a very welcome development indeed. ladies and gentlemen, this initiative represents a major milestone in developing linkages between the industry and tertiary institutions which is key in bridging the gap between expectations of employers and those of the labour force. it is also testimony that we have financial institutions and business entities that are willing and committed to promoting private entrepreneurship among young people in our country at the level of start - up businesses. once again, i commend the sponsors and their partners for this important initiative. i am certain that your efforts will go a long way in contributing to the building of an entrepreneurial society in zambia. this is a task not only for you but for everybody. i wish to urge in particular, the education system in zambia to enhance their efforts in promoting positive attitudes towards entrepreneurship in the institutions of higher learning. i further call on the media to play its rightful role in educating the masses and the youth in particular on the importance of entrepreneurship and indeed to give more coverage to zambians who have succeeded in entrepreneurship in order for our youths to be motivated. i also wish to urge other banks and financial institutions to emulate intermarket banking corporation to develop such well meaning initiatives for this is indeed good corporate social responsibility. i am sure that there are a number of entrepreneurs all over zambia who are in dire need of that seed capital as well as the initial push to realize their dreams. i have in mind here the very innovative entrepreneurs in mutendere, kalingalinga, garden compound, mandevu and several other industrial clusters in our country who are trying to do their best but