TOKYO: With the Chinese slowdown making the world look for other growth
drivers, India can become a powerful driver of economic growth, Finance
Minister Arun Jaitley said here on Tuesday.
"The ability of China
to shoulder that percentage of growth may not be there and, therefore,
the world also is now looking for other shoulders to rest its growth
on," he said speaking at 'The Future of Asia' Conference here organised
by Japan's Nikkei Inc.
"And since we have a lot of infrastructure
deficit and expenditure still to undertake -- I think all that is going
to be a very powerful driver of economic growth in India," Jaitley, who
is on a six-day tour of Japan to promote India as an investment
Jaitley also said that no one country can
really replace another because the world has enough space for major
economies to emerge.
China's current slowdown, he said, has meant
it is "going through a structural transition into a more consumption,
service oriented economy."
"But China will always remain a major economy," he added.
said while global growth has slowed down to around three per cent and
the developed world seems to be growing at an even lesser pace, Asia has
maintained a growth rate of around six per cent.
slowdown did impact the average Asian growth, which is now anticipated
to be about 5.7 per cent. The Chinese developments do certainly impact
on Asia," he said.
"But I have not the least doubt that an
economy of that size even with the normal that they now predict, or
something less than the normal, would still have a great impact both on
Asia and the world," he added.
Asia has now become the recipient of 40 per cent of global foreign direct investment, Jaitley noted.
"Whether it is the Asean, Saarc, RCEP or TPP. India always had a very important and powerful message for Asia."
I think the structures for ensuring that peace in the region are still
structures that are evolving as the economy of Asia is evolving and I am
quite sure that India will be a major stabilising force in the region,"