India, Russia to Emerge Stronger among G-20 countries out of Current Meltdown

India along with China, Russia and South Korea would emerge stronger out of the current crisis as they enjoy strong economic foundations based on foreign exchange reserves, higher growth rates in GDP per capita and sound monetary policy measures, according to Assocham. Its study titled "India & G20: Economic fundamentals amid global recession" considered seven economic indicators relating to size of economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.

Ranking on these indicators (based on scores on a scale of 10) suggests India ranks fourth amongst the group of advanced and emerging economies (G-20) in terms of the seven key economic indicators determining the scope of policy intervention (both fiscal and monetary) and the impact of the global economic slowdown.

The current crisis, having being originated in US then spreading to Europe (with UK specially hit) and Japan has led these advanced countries low in rankings at 11, 12 and 13 respectively.

Looking at the severity of the current crisis, globally coordinated steps have been taken on both the fiscal as well as the monetary grounds to insure the unprecedented growth story of the world against the recessionary forces pulling down the growth substantially. However policymakers around the world are likely to take further actions to deal with the turmoil.

Although the economic fundamentals have been shaken drastically across the globe in the past few months, two of the three Asia's largest economies scores over other group countries on the aforementioned economic parameters which take them ahead of the other group members to devise effective action plans to deal with the crisis situation even efficiently. The study found India ranks fourth among the group of advanced and emerging economies (G-20) in terms of the seven key economic indicators determining the scope available for policy intervention (both fiscal and monetary) and the likelihood of revival from the aftermaths of the global economic depression.

Of the seven key economic indicators, in terms of the economy size (share of world GDP at PPP exchange rates) India ranks fourth among the group countries; preceded by Japan at third, China at second and the US at the topmost spot. Europe's largest economy, Germany, stands fifth. The size of the economy presents them a relative advantage over the peer countries to take robust action against the spreading downturn in the economic activity.

Defining the consumer spending power, the change in GDP per capita as the second economic indicator reveals the respective strengths of the G-20 nations to boost their rapidly slackening domestic demand. As a major part of the announced fiscal stimulus packages globally, a push to lift up the consumer demand is viewed as one of the priority area for the policymakers as it makes heavy contribution to their national output. According to the change in GDP (PPP) per capita for 2009 over 2008, India ranks at third position behind Russia (second) and China (first).