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'India confident of weathering global credit crunch'

By H S Rao in London
November 19, 2008 17:26 IST
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India is confident of weathering the current global financial crisis and is on track to become the world's third largest economy by 2035 as predicted by experts, India's High Commissioner to the UK Shiv Shankar Mukherjee has said.

"Much of what India aspires to achieve could have been put in jeopardy by the ongoing global credit crunch and financial crisis that is nudging many developed countries towards recession.

"However, the prudent financial sector regulation that India was criticised for in the past appears to have saved its economy from this crisis," he said in London on Tuesday night while presenting a talk entitled 'India, Quo Vadis'.

"That, along with the fact that the Indian economy is essentially domestic driven. The primary drivers of growth are domestic consumption and investment, which remain healthy.

Domestic savings and capital formation continue to be around 34-36 per cent of GDP.

"Thus, GDP growth rates for the current year have been scaled down only by a percentage point to 7 1/2 to 8 per cent.

"As a result, India remains largely on track to become the world's third largest economy by 2035 and second largest by 2050, as predicted by Goldman Sachs in BRICS report, which said India's contribution to the world economy will be high and increasing as it fulfils its growth potential and becomes a motor for the global economy."

The event, sponsored by the Bank of Baroda, which is celebrating its Centenary this year, was presided by its chief executive officer, UK and Europe, S S Mundra. 

The high commissioner said: "India is determined to carry forward the Confidence Building Measures with Pakistan, even in the face of negative incidents like the attack on the Indian Mission in Kabul."

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H S Rao in London
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