By IANS,
New Delhi : India needs to play a larger role in the global economy, especially on issues related to trade, capital flows, financial regulation and climate change, the Economic Survey has said.
“Given its size and its profile in the global economy, India will inevitably need to play an active role at global level,” said the survey tabled in parliament by Finance Minister Pranab Mukherjee Thursday.
“Participation should not only be in debates, but in influencing the rules for the global economy on overarching macroeconomic issues such as trade, capital flows, financial regulation, climate change, and governance of global financial institutions,” it added.
The survey also said that by now India is too much a part of the global economy and should not take a passive stance in the current global debate or just wait out the period of crisis.
“India is already too much a part of the global economy and polity, developments in the world will affect India deeply and what India does will affect the world. There is, therefore, a need for India to engage with the world in terms of action and ideas.”
According to the survey, India enjoys the unique advantage of having many economic indicators in its favour, particularly a large domestic market, robust investment-to-GDP (gross domestic product) ratio, and demographic advantage.
However, all of these will need to be leveraged to get the full advantage out of them.
This would require India to address its internal challenges, which include the long-standing problem of poverty and the development of its social and physical infrastructure.