We are drivers of world economy – FM

03 Dec '07

3 min read

Opening the session at India Economic Summit Sunil Bharti Mittal, Chairman and Group Chief Executive Officer, Bharti Enterprises; President, Confederation of Indian Industry (CII), India, said, the drivers of world growth have shifted to Asia, with India emerging as a strong force in the region and in the world. He said that India is on a sustainable growth path, but that divides between rich and poor are growing and the focus of further reforms should be on achieving inclusive growth.

In welcoming the group, Klaus Schwab, Founder and Executive Chairman, World Economic Forum, emphasized global citizenship and India's increased responsibilities as it takes its place in the world.

With India and China now contributing 60% or more to the global GDP growth, it is clear that the drivers have shifted from the developed world to developing economies, said Palaniappan Chidambaram, Minister of Finance of India. However, he went on to say that this does not mean that economic power has shifted; developed countries have enormous competitive advantages in the areas of knowledge (and attracting human talent) and financial resources, and in the control of material resources (especially oil and gas).

Chidambaram pointed out that India's competitive advantage will come from its ability to produce quality goods and services at lower cost, its nimbleness and ability to innovate, its diversity and its huge human asset – its demographic dividend.

The ministerstressed that, while the economic outlook is favourable, there are some risks that could derail India's future growth prospects. Some of these risks are beyond India's control, he argued, including exogenous economic crises and an oil price shock. Other risks are endogenous and can be overcome – for example, risks associated with demographics and the lack of freshwater.

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