China’s role in the recovery of the global economy remains crucial despite the world’s second largest economy having itself slowed down, New Development Bank (NDB) president KV Kamath has said.
Kamath, the first president of the multilateral bank established by BRICS countries (Brazil, Russia, India, China and South Africa), is also confident of growing economic ties between India and China, calling it a “win-win opportunity” for both sides.
Emerging markets will play a key role in the global economy’s recovery, he told HT ahead of the G20 Summit in Hangzhou.
“Emerging markets have spearheaded the global recovery post the financial crisis. China is the world’s second largest economy and remains an important powerhouse for global growth,” Kamath said over email.
“Even though China’s growth rate is slowing down and (it) is undergoing transition, it still makes a significant contribution to global growth.”
Elaborating on focus areas for the summit, Kamath said: “The global recovery still looks fragile and there is a need that the next chapter of development unleashes economic growth – not just for the few at the top, but inclusive and sustainable growth that lifts the fortunes of many.”
China is expected to “seek a stronger voice for developing countries and showcase itself as an important business centre”, he said.
{{/usCountry}}China is expected to “seek a stronger voice for developing countries and showcase itself as an important business centre”, he said.
{{/usCountry}}“With strengthening of economic relations between the two countries, Indian companies will have better access to the vast Chinese market and will be able to leverage global opportunities out of China,” he said.
DJ Pandian, vice-president and chief investment officer of the China-led Asian Infrastructure Investment Bank (AIIB), said the G20 Summit is a platform where world leaders should discuss the role Multilateral Development Banks (MDBs) can play in bridging infrastructure gap and generating balanced growth.
In the run-up to the summit, the Chinese government called a meeting of all major MDBs such as the AIIB and NDB to discuss the road ahead. India is one of the founding members of AIIB, which was launched in April 2015 and now has 57 members.
“Asian banks have to work together and find a way so that growth can be generated. It has to be generated across the globe. I think the G20 has to discuss it (growth) and it is here that MDBs like the AIIB can play a vital role in fulfilling the vision and bridging the gap,” Pandian, a former chief secretary of Gujarat, told HT in Beijing.