New Delhi: India with its robust legal structure, banking system and skilled manpower is the new economic icon of emerging powers and is sure to be on track again for 7 per cent growth, External Affairs Minister Salman Khurshid said on Sunday.
"India with its good legal structure, corporate governance, banking system, financial system and skilled man power has become the new economic icon of emerging powers. Our development model has managed to deliver long term economic pay offs at much lower levels of investment," Khurshid said. He said that although India too slowed down like other emerging economies in the global downturn but fundamentals of Indian economy remain strong.
"We were aiming at 9 per cent, we had reached 8 per cent GDP growth. Then began the slip, we came to 7 then 6 then 5.8 per cent. But as our Finance Minister and Prime Minster have said, with confidence based on the work that has been done, that over the next two years we will inch back to 7 per cent," he said at a function organised by ASPEN Institute India here.
The minister said that India and China have their respective strengths and both the countries try to replicate them at some moments. "There are strengths that we have in India and strengths China has. We recognise each others strengths and I do believe that at certain moments we even try to replicate these strengths. But they will remain for a very long time the unique strength of our countries," he said.
People think of us as an alternative or competition to China, but our PM has said clearly that the world is large enough for both of us to be able to operate successfully, both in terms of politics and economics, Khurshid said. Commenting on the economic path taken by India, he said that India has faced the richest range of challenges. "We have faced richest range of challenges and despite all that we are steering a clear path of growth and that is something China doesn't have. We have got to take our decisions in our public space. Chinese can take their decision in board-rooms," he said.
"We are trying much harder and we are working in much more difficult situations. We wish them well in their system and we hope that we will succeed in our system," he said.
Khurshid said that India has a special unique contribution to make in terms of both our historical and cultural linkages with the world and present attempts to provide outreach to the world. He said that emerging economies have a major role to play in the way world economics works. "One of the most important change is the growing share of this new constellation of rapidly developing economies. There is no doubt that in today's era of globalisation, business from these economies is changing the way world business is done", he said.
Formation of G20 is a significant geopolitical shift in global economic governance. G20 is working towards global economic recovery, he said. "It is clear that emerging economies can take their rightful place in global order only if they achieve political stability, adapt green technology, invest in innovation, harness their demography, adopt ICT and share their experiences," he said.