Minister of Commerce and Industry Kamal Nath has said that the country is an emerging Asian powerhouse, as India has recorded the fastest gross domestic product growth in 18 years.
Addressing the Plenary Session on "The Emerging Power of Emerging Markets" at the 11th International Economic Forum at St. Petersburg on Sunday, Kamal Nath highlighted the change in the global trade that has come about as a result of the rise of the emerging markets and pointed out India as an example of the growing clout of these countries in global economy.
"What better example to cite the growing clout of emerging economies than India, which has recorded the fastest GDP growth in 18 years, with the economy growing 9.4 per cent in 2006-07," he said.
The minister said while India continues to alter the coordinates of global trade, the country itself has seen robust growth in manufacturing with the sector growing 12.3 per cent in 2006-07 as compared to 9.1 per cent in the previous year. "Very few countries in the world match these growth rates," Kamal Nath said.
The Minister recorded the strides India has made in attracting foreign direct investment and said that an estimated growth rate of 9 per cent over the next five years starting 2007-08 would need an investment rate of 35.1 per cent of GDP.
He said there is huge investment potential in India in the upcoming knowledge process outsourcing sector. "We are likely to capture around 15 per cent of the over $54-billion KPO industry worldwide by 2010," the minister pointed out.
Kamal Nath also emphasised the opportunities presented by India's farm and food processing sector which has been identified as a priority area and also spoke of India's strength in the gems & jewellery and automobile and auto-components sector.
Quoting a McKinsey study, he informed that the Indian pharmaceutical industry is projected to grow to $25 billion by 2010.
On the issue of the retail revolution, the minister said that organised retailing in India is expected to grow at the rate of 37 per cent in 2007 and 42 per cent in 2008. "This is also offering opportunities in real estate sector," he stated.
Some of the facts regarding the emerging markets highlighted by Kamal Nath during his address were:
- The share of emerging markets in global merchandise exports has more than doubled between 1970 and 2005. From 12.3 per cent share of global exports, emerging markets now account for 28.8 per cent of global exports. The Asian emerging markets raced from a mere 5.8 per cent share of global exports in 1970 to 19.6 per cent in 2005.
- The share of emerging markets in global merchandise imports has doubled between 1970 and 2005. From 13.6 per cent share of global imports, emerging markets now account for 25.6 per cent of global imports. The Asian emerging markets have seen their share go up from a mere 6.6 per cent share of global imports in 1970 to 17.3 per cent in 2005.
- In 1970, the emerging market economies accounted for 13.5 per cent of the global FDI inflows, this proportion increased to 31.7 per cent in 2005. Particularly notable is the performance of the Asian emerging economies whose share in global FDI inflows quadrupled from 4.1 per cent in 1970 to 18.4 per cent in 2005.
