Finance minister Pranab Mukherjee on Monday said adverse global economic developments, including the fallout of downgrade of US sovereign rating, present new opportunities to India, and the country could become a source of stability for the world economy.
Against the backdrop of overall investor sentiment being hurt by global economic uncertainties, Mukherjee said India could also emerge as a safe haven for global capital inflows. He was speaking at a function to mark the Golden Jubilee Celebrations of Indian Economic Service.
"If India can continue to grow and acquire economic strength, we could be a source of stability for the world economy and provide safe havens for restless global capital," he said.
The recent events such as Standard & Poor's downgrade of the US credit rating as well as debt crisis in Europe, have severely dented global markets. Even though these recent developments are a cause of concern for India, Mukherjee said "at the same time...these shocks are markers of shifting balance in the global economy, presenting new opportunities for us. We have to be alert to shape real-time policy responses, reform systems, improve the regulatory framework of our institutions and make the most of the opportunities coming our way."
India's robust performance in difficult times shows that it could actually come out stronger from any international financial crisis. He said with a greater role now played by market forces, there is a need to re-design incentive structures for development and regulation of markets and for improving the quality of governance.