Finance Minister Says India’s Economy Is Resilient

29 May 2012 14:00 - Florence Fullalove

Finance Minister Says India’s Economy Is Resilient

Finance Minister, Pranab Mukerjee, has said that India’s domestic demand, high savings rate and regularity mechanism make it a resilient economy. However, he did emphasise the need for increased coordination among countries to realise collective gains despite global economic concerns. Mukerjee said that the performance of Asian economies in short to medium term is crucial not only to keep the engine of global growth running, but also to hasten global recovery. He added that Asian economies in general have evolved to be attractive destinations for foreign direct investment, which is aiding innovation in their economies.

When speaking of global efforts Mukerjee said, “We must appreciate that to gain in unison, we must act in unison. Even in the existing international fora, including the G-20 and the IMF, we should aim to coordinate more in areas where there is significant collective gain to be achieved.” He added, “A crisis of the magnitude that we are witnessing compels us to take notice of our deficiencies, suitably re-orient policies and re-define priorities.” Going forward he said the gross domestic product growth in many developing nations must be accompanied by measures aimed at fulfilling the aspirations of the young population just as social security compulsions would assume prominence in ageing societies.