TOKYO: A slowing China presents a great opportunity to India to become the growth engine of the world but New Delhi must work harder to boost its economic productivity, speakers at a conference in Tokyo on Monday.
India, which overtook China at the end of last year to become the fastest growing major economy in the world, has been hailed as a bright spot in times of flailing global growth. But the economy is far from realising its potential, leaving investors to wonder if it would ever be able to scale up.
“There is tremendous slack in the economy,” Goh Chok Tong, Singapore’s Emeritus Senior Minister, said at the 22nd International Conference on The Future of Asia, referring to a measure of unemployed resources in the economy. The conference, which runs through Tuesday, is organised by Nikkei.
“India is where China was a couple of decades ago. But India now has the opportunity to be the engine of the world.”
Goh said although the United States remained the most influential global player, emerging economies such as India were developing confidence in how they could expand their influence.
Other speakers, including Trinh Dinh Dzung, deputy prime minister of Vietnam also referred to New Delhi’s growing economic and strategic heft.