Global Recession Recovery Team: India named Captain

“I think it is reasonable to assume the worst is over. We will now get back to more normal growth,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said about a week ago while addressing the press.

“The prime minister is confident that we will be able to take it to 9 percent in the next 24 months. By and large our economy is stable and strong, and we in India have perhaps done better than others in this crisis. India has a sound regulatory framework”, Trade Minister Anand Sharma said about a week ago while he was in London

The above two statements coming from two of the most apt people commenting about the Indian Economy is surely something to cheer about. I presume they are not just giving Indians a motivating speech but rather talking from actual data and facts.

In fact, when you see the pace of expansion in the Indian Economy stabilizing in the first quarter of the this year at 5.8percent (as it was in the three preceding months) as compared to China which showed a drop in its GDP to 6.1percent from 6.8percent (owing to their dependence in overseas sales) in the same period it sure is a great sign of India’s $1.2trillion economy emerging from the worst global slump since the Great Depression.

Why India?

Paul R. Krugman, a Professor of Economics and a recipient of the Nobel Prize in Economics in 2008 recently told how based on IMF’s new World Economic Outlook recessions caused by financial crisis typically end with export booms, which he feels is a disturbing results as it means that the driver for recovery will only be available if we can find another planet to export to.

The above statement by Krugman could very well be the reason why India, this time around could just find itself in the midst of things with an equal chance to add its name of the noble few which may lead the next Global Charge (by providing the extra demand owing to increased consumption).

One may argue about the predominant role of developed economies, but the fact that they are either:

• Bogged down in the substantial quantities of debt that they desperately need to pay off, or
• Weighted down by those elderly populations who are weakening consumption growth and leading to export dependence (Germany, Japan etc)

may just give India the edge to lead the Global Economic Revival. India could actually be the country that supplies this extra demand required!

“So guess its the hour of realization,

For India is the chosen nation”