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'Growth of Asian economies crucial for global growth'

business Updated: May 27, 2012 02:31 IST

The growth performance of economies in Asia in the short to medium-term is crucial to fast recovery from the present global slump, finance minister Pranab Mukherjee said on Saturday.

Inaugurating a national seminar on "21st century as the Asian Century - Role of India and China" in Manipal, he said India's growth in 2011-12 is estimated to have slowed to 6.9 %.

IMF expects growth in Asia Pacific region to gain momentum in 2012, with a growth projection of 6 % in 2012 and 6.5 % in 2013.

In the long term, a key advantage that Asian economies, prominently India and China possess is high rates of savings and investment.

India's resilience, Mukherjee said, results from the fact that the bulk of India's GDP is driven by domestic demand.

India's banking sector is robust and the export is increasingly getting diversified with developing countries being our largest export market, he said.

"Our regulatory mechanisms have been successful in ensuring financial sector robustness in the economy. China's policy too has started emphasising a growth strategy that is more dependent on domestic demand", he noted.

Asian economies in general have evolved to be attractive destinations for Foreign Direct Investment, which is aiding innovation in their economies, Pranab said.