By IRNA,
New Delhi : “Asia’s GDP will become a significant contributor to the world GDP in a span of few years,” said Montek Singh Ahluwalia, Deputy Chairman Planning Commission of India.
Ahluwalia speaking at the Confederation of Indian Industry (CII) – BCG breakfast Session on “Rebuilding the Global Economy: Asia’s Role” held today at the World Economic Forum meeting in Davos, Switzerland, cautioned that with Asia’s growing control over the world economy some of the industrialized world was making “noises” of protectionism, CII Press Release said.
“One of the key challenges that Asia would face would be the role it would play to control and lead the rules of the game,” he added.
“There was a big shift in the last twelve months in the role played by Asia in rebuilding the Global Economy. While the world contracted the Asian economies grew. Asia has to take over the world leadership in directing the global economy but was not yet ready. Asia still looks at US and Europe to play the lead role,” he added.
The recovery in the world economy was primarily driven by consumer demand. By 2020 Asia’s consumption will become 21 trillion USD from current 7 trillion USD. In comparison US market which consumes 10 trillion USD now will add another 5 trillion by 2020. Asia’s market has to been seen from the latent market perspective to get an understanding on the true market size. Asia requires ferocious customization for capturing the market size.
Some of the key challenges being faced by the world today are fragile banking systems, global trade imbalances and unemployment. These challenges will lead to higher degree of intervention by governments in directing and managing the global economies.
Mr Kishore Mahbubani, Dean, Lee Kuan Yew School of Public Policy, Singapore; Dr Janmejaya Sinha, Chairman, Asia Pacific, BCG India; Mr Daniel Stelter, Global Leader, Corporate Development Practice, BCG Germany; Mr Venu Srinivasan, President CII and Mr Hans-Paul Burkner, Global Chief Executive Officer and President, BCG Germany, were other panelists at the breakfast session.