India will emerge stronger from global meltdown: Assocham
India would emerge stronger from the global financial crisis as they enjoy strong economic foundations, higher growth rates and sound monetary policy measures, according to an industry lobby survey.delhi Updated: Jan 04, 2009 19:11 IST
India, along with China, Russia and South Korea, would emerge stronger from the global financial crisis as they enjoy strong economic foundations, higher growth rates and sound monetary policy measures, according to an industry lobby survey.
The study by the Associated Chamber of Commerce and Industry (Assocham), titled 'India and G20: Economic Fundamentals Amid Global Recession', said India ranked fourth among 20 advanced and emerging economies (G-20) in terms of seven key economic indicators.
The US, China and Japan were ranked first, second and third respectively.
The seven economic indicators are: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
Germany, Europe's largest economy, came fifth. The size of the economy gives these countries a relative advantage over the peer economies to take robust action against the spread of downturn, he report said.
It added that the strong consumer spending power of the G20 economies would help them boost the rapidly slackening domestic demand.
Among the advanced economies, US would witness maximum contraction in domestic demand this year, followed by Britain, Italy and Germany.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
Low ranking on these indicators presents India key challenges to announce a heavy fiscal stimulus package as compared to China which fared better at seventh and third positions for the two indicators, respectively.
In terms of foreign exchange reserves that present a cushion to protect an economy from speculative capital movements, China tops the list with $2 trillion. India ranked fourth after Japan (second) and Russia (third).