With global headwinds hitting emerging markets, finance minister Arun Jaitley on Wednesday said volatility has become a global norm, but India can certainly grow at 8-9% in a friendlier global climate.
The view was echoed by business leaders from India and other countries at the WEF annual meeting, even as they felt that not “all perfect storms” in the world today would hit the Indian economy.
“Certainly, the world is facing a difficult and challenging situation. I don’t think we are going into extreme conditions because there is predictability but volatility today is the norm and no country is immune to it,” Jaitley said during a panel discussion.
“We had two bad monsoons while domestic and global issues impacted several sectors and that in turn has impacted banks. We are growing at 7-7.5%. In a more favourable environment, getting an extra 1-1.5% is not difficult.”
Speaking in the same session, noted economist Nouriel Roubini, widely known as Dr Doom because of his earlier predictions, said he does not see a global financial crisis like that of 2008 imminent, but there are risks on several fronts and there are “many perfect storms”.
“There are proxy wars in various parts of the world. A fall in oil prices should be a positive for the global economy, but the reality is that it is leading to sharp negative reactions in various markets, including in India,” he added.