February 15, 2010 by akhilendra
New Emerging Global Leads
We have discussed more than enough what last year’s recession has done to the global economy. Fever is still on but now we are moving more rapidly towards a come back. One of the world’s worst economical setbacks has left world bleeding. Most of the biggest economies are still recovering and sign of last year’s blitz can be still seen, two asian countries which have done exceptionally well are India and china.
Their robust growths in last one year have proved that they are not immune to these jerks but they have got definitely a very strong immune system to tackle these large catastrophic issues. This has revoked a new sense of confidence among foreign investors to invest in these countries. When banking sector in west was struggling to save their existence, banks in these countries came out as almost immune to these crises. India seems to be a place where most of opportunities are still underexploited and provide a very good platform for long term robust growth. China which is about to complete one year since it launched a very aggressive stimulus plan last year and relaxed its monetary policies. It has witnessed a very aggressive a global response and may even achieve the target of 8 percent GDP. China is gradually become the central of global economy and may even overtake Japan next year to become the second largest economy in the world. There are many projects in china which are halfway and will further contribute to its ride. China is working very aggressively in improving its infrastructure and it is going to increase its spending which will eventually influence its economy.
In case of India where government spending on reforms is already on a rise and have gone up substantially, now things at ground are unfolding and changes are gradually becoming visible. Though in case of India, things are a bit slow in comparison of china but its long term picture is still quite rosy and with a very strong financial system, it has continued it’s high ride. Government spending on infrastructure has gone up and stimulus package which was launched early this year has yielded good results. It is attracting lot foreign investment which helping in further contributing to its comeback journey. India and china will now have to continue with their success stories to make sure that global economical recovery remains on track. They are gradually acquiring a new status and position in global elite countries club. They are getting more say in global financial matters and its been quite evident from recent G20 summit. They are emerging as emerging world’s new financial super power and leads.
Leave a Reply