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'Coordination among major economies would redefine contours of global economy'

Vice President Hamid Ansari opined that in terms of economic growth, India weathered the global economic crises relatively well.

Agra: Vice President Mohammad Hamid Ansari has said that coordination among major economies would redefine the contours of the global economy.

Speaking at the "Partnership Summit-2013 on Global Partnership for Enduring Growth" in Agra yesterday, Ansari said: "Given the global economic landscape, it is imperative that the advanced and emerging economies work in tandem to prepare a roadmap for economic recovery, leveraging each other's strengths and comparative advantages to create a new economic world order."

"Partnerships, therefore will assume great significance, and will be instrumental in accelerating economic recovery for many countries," he added.

"Partnerships, such as the G-20, whose member countries account for two-thirds of the world's population, 90 percent of world GDP and 80 percent of world trade, and the recently launched Regional Comprehensive Economic Partnership, a group of 16 countries comprising ASEAN member states and 6 countries with which they have Free Trade Agreements, will redefine the contours of the global economy," he added.

He said that the global market-place will change with the formation of new trading blocks and enlarged markets and companies must gear themselves up to meet the new requirements.

"While doing so, they must be mindful of the need to balance growth with sustainability as also of corporate social responsibility. Likewise, innovation and creativity will play important roles in reviving growth, especially in emerging economies that often struggle with limited resources and dated technology," he added.

The Vice President opined that in terms of economic growth, India weathered the global economic crises relatively well.

"Timely stimulus packages and other measures coupled with strong domestic demand helped to a great extent. The Government has addressed the issues of fiscal deficit, high inflation, negative trade balance with the world, flagging exports with a slew of measures," he said.

"Notable amongst these are seminal indirect and direct tax reforms, FDI liberalization in retail and aviation, disinvestment in PSUs, and the establishment of a Cabinet Committee on Investments headed by the Prime Minister for faster clearance of infrastructure projects, all of which are aimed at reviving economic growth," he added.

"Even though we could not maintain the robust pace of 7.8 per cent average annual GDP growth of the decade from 2002-3 to 2011-12, we did recorded GDP growth of 5.3 per cent in the July-September quarter of 2012-13, and are expecting to end the current fiscal year ending March 31, 2013 at 5.5-6 per cent," he said.

He further emphasized that the challenge before us is to restore as soon as possible the high growth trajectory, along with adequate employment generation, in a sustainable and inclusive manner.

"This would be the necessary condition for addressing the primary challenges of poverty alleviation and socio-economic development confronting us,'' he said.