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Posted on Jan 28, 06:56PM | IBNS
Union Commerce, Industry and Textiles Minister Anand Sharma on Monday said emerging economies will be the engine of global growth.
Sharma, while delivering his keynote address during a session on "The Large Emerging Economies: New Growth Hubs of World" in The Partnership Summit 2013 in Agra on Monday, said: "Sustaining a high growth for a country like India is not an optional choice for us but a social imperative as only through sustained economic growth will we be able to lift millions out of poverty net."
He was of the opinion that despite the economic challenges being faced by nations world over, the emerging market economies have registered significant gains based on liberal economic reforms pursued over the last two decades.
He further said that these emerging market economies would now have to address "the fundamental structural issues which face their economies and usher in the next phase of economic reform."
"The Government has established a Cabinet Committee on Investments headed by the Prime Minister himself which will not only fast track high value investment projects but also help in cutting down delays for regulatory clearances," said Sharma.
Sharma also acknowledged the "inherent advantages" of the emerging economies by stating that these have given them strength and resilience to withstand the external shocks.
Citing the advantages, he said that the emerging market economies have a fast expanding middleclass which is buoyed by the rising income levels.
Along with this, these economies are also becoming hubs of low cost or "frugal innovation", he said.
"As companies and governments enhance R and D expenditures, we will see emerging economies becoming even more competitive as technology providers," said Sharma.
He further said that the emerging economies are also set to reap the benefits of the demographic dividend.
Sharma added that these emerging economies are also a source of rich human resource.
"India is home to one of the largest scientific manpower in the world with over 12 million engineers and doctors and an equal number of post-graduates in science and mathematics and we annually add 2 million graduates, 700,000 post-graduates and 300,000 engineers," said Sharma.
He however added that these emerging market economies have huge infrastructure deficiencies, which needs serious attention to be paid into.
Sharma said: "This presents an opportunity for even greater private investment flows - both domestic and foreign - which will continue to catalyse growth."
He further said: "In India alone, we are going to spend USUSD One trillion on infrastructure building over the next five years, half of which will come from private sector."
Sharma, ending his address, said that the future of the 21st century world would be shaped neither by the developed world alone nor by the emerging economies by themselves, but through creative partnerships between the two.