World Economic Forum: India, China emerge as powerhouses of global growth

As India and China are emerging as a sweet spot to rev up world economic growth, inward-looking approach for development as “new normal” raised questions over the future of globalisation at the WEF meet at Davos, while Indian leaders listed out demonetisation as a measure owed to people in the fight against black money.

As leaders and economists debated the future of globalisation in Davos at WEF, the emerging narrative shifted to growth booster from Asia for the global economy amid darkening prospects for trade worldwide.

While asserting that UK would retain its internationalist approach despite Brexit, Prime Minister Theresa May said the country’s biggest manufacturer Tata is Indian but still there cannot be anything more British than its product Jaguar Land Rover.

India was today applauded as a major driving force alongside China for world growth with leaders and economists emphasising the need for increased regional cooperation.

Veteran banker and New Development Bank President K V Kamath said a “new normal” is emerging where many countries would prioritise an “inward look” at their national policies even as India remains in a comfortable position.

While stating that India and China contribute a big chunk today to the global growth, he India is in a “sweet spot” as the country absorbs investments in infrastructure, manufacturing and areas driving the consumer sector.

Against the backdrop of rising uncertainties, business leaders and economists felt that India and China have a great role to play in taking forward the Asian growth story by engaging in regional cooperation and eventually boost the global trade.

Reflecting the optimism over the two leading economies, Malaysia’s Minister for International Trade and Industry Mustapa Mohamed said India and China are very important in taking forward the Asian growth story.

As the prospects for global trade seem to darken, noted economist Kishore Mahbubani said there is indeed a vacuum at the leadership position and it needs to be seen who fills it.

He also noted that ASEAN (Association of Southeast Asian Nations) has a great potential though a lot of people generally focus mostly on India and China.

Making a strong defence of demonetisation, Commerce Minister Nirmala Sitharaman said the government “owed” such a step to the nation for eradicating the black money menace.