By IANS
New Delhi : India and China have the potential to be the engines of the world economy, Prime Minister Manmohan Singh said Thursday.
“In the years to come, India and China will be viewed as the new growth engines of the world economy. We are not yet there, but we will be,” Singh said at the release of a book, “Business Standard India 2008”, at his official residence here.
“We can certainly sustain much better domestic performance based on our own effort and potential. Our macro-economic policies are aimed at ensuring this,” he said, adding that the “challenge before us today is also to get the politics right”.
“If we can get both politics and prices right, the economy would be on surer ground for sustained growth. That is not just a challenge for political parties. It is equally a challenge for those who are in the business of shaping mindsets.”
Asserting the government’s commitment to ensure that the uncertainty in the global system does not harm the growth of Indian economy, Manmohan Singh said, “A large continental economy like ours can sustain fairly high rates of growth based on the stable and sustained growth of the home market, even if there is turbulence in the global market.”
The prime minister said there was more to be done to sustain the current growth process. “But let us not forget what has already been done, and the distance travelled.”
“There is much to be proud of in what we have achieved so far. An objective assessment should give us both courage and energy to move forward,” he said.
“It is on the firm foundation of an inclusive political process, based on the principles of an open society and an increasingly open economy, that we have sought better economic performance,” he said.
Cautioning that the country cannot take the (economic) success for granted, the prime minister said that sustained development was not like going to a free dinner party. “We need to pursue sound macro-economic policies designed to raise savings, investment and productivity,” he said.
Manmohan Singh, who appreciated the business daily Business Standard’s new initiative, said there was a growing interest in the Indian story. “This is both a reflection of what is happening in India and of growing appreciation of this across the world,” he said.
“The India story is not just about economic growth and business outcomes. It is also about social change, social mobility and the political empowerment of more than a billion people. The saga of over a billion people, seeking their social and economic salvation through the framework of a plural democracy is without doubt one of the most uplifting stories of our times,” he said.