Foreign media sees India gaining from China slump

New Delhi: TIMES NEWS NETWORK





India stands to benefit from China's slowdown thanks to its resilient consumer spending and improving macroeconomic fundamentals. The foreign media is taking note of the growth potential of Asia's third-largest economy acknowledging the strengths of India against the backdrop of a slowing China and a sluggish global economy .“India hasn't been rattled as badly as Brazil, Russia or South Africa. Its international reserves are ample, and it isn't highly dependent on foreign capital to fund imports,“ says the Wall Street Journal in a report on how India could benefit from China's slowdown.
“It also doesn't rely on exporting resources, which means ebbing Chinese demand for minerals and metals isn't serious. And it doesn't have many companies competing head-tohead in third markets against Chinese exporters that benefit from a weaker yuan,“ the newspaper said.
It said the large population which buying more stuff than they used to is a hook for growth hungry companies and investors although it is far away from becoming a replacement engine for the global economy . Indian policymakers have also highlighted the strength of the Indian economy to withstand any turmoil in the Chinese and global economy . Authorities have pointed to the robust foreign exchange reserves, improving macroeconomic data and the continued interest of foreign companies to tap into India's demand.
After the initial impact of After the initial impact of he Chinese stock market rout, he financial markets in India have stabilized as policymak ers have fanned out to calm jittery nerves and have pointed to the improving health of Asia's third-largest economy .
In an interview to the BBC, Finance Minister Arun Jaitley detailed the reasons why India could become an engine of growth for the global economy .
“I see this as a great opportunity . The Chinese `normal' has now changed. It is no longer the 9%, 10%, 11% growth rate,“ Jaitley was quoted as saying by the BBC.
“So the world needs other engines to carry the growth process. And in a slowdown environment in the world, an economy which can grow at 8-9% like India certainly has viable shoulders to provide the support to the global economy ,“ the FM said.
Several multilateral agencies have forecast that India will overtake China's growth rate this year and have cited India as a bright spot on the global economic landscape. Global rating agency Moody's has retained the positive outlook on India's sovereign rating and have said if policies to improve the country operating environment are effectively implemented there could be an improvement in the sovereign credit profile.
“The positive outlook on the rating reflects Moody's view that recent and proposed policies will stabilize inflation, improve the regulatory environment, increase infrastructure investment and lower government debt ratios,“ Moody's said in a report. India's GDP growth -which Moody's forecasts at 7% this year -is likely to surpass the average for its peers, as it has over the last decade, the agency has said.