Even as the world is undergoing a slowdown with concerns across the developed and developing economies,India is positioned far better not just against the developed countries but even amongst the BRICS countries,said noted American economist Nouriel Roubini,known for his contrarian views,while addressing a gathering here on Wednesday.
Speaking at the 44th general assembly of World Trade Centre Association (WTCA) he said that India has a strong economic potential mostly because of the young population that it has and so there can be huge demographic dividend provided people are educated,given the right skills.
India will have to invest in human capital, said Roubini. He said that India is at an advantageous position as compared to China in that aspect and will benefit from it in the long run.
Also known as Dr Doom,Roubini felt that India is in a better position than China both because of the demographic advantage and also less dependence on external trade.
Pointing out concerns around slowing pace of economic growth,political uncertainty,large fiscal deficit,current account deficit and weakness in private investments in India he said,Growth in India has slowed down because of the slow pace of the economic reforms,supply side bottlenecks and weak infrastructure. While the world has been concentrating around growth in BRICS nations Roubini said that the growth across all the countries have been coming down. While that of China has come down from 10 per cent levels to 7 per cent,that in India has come to 5 per cent.
Even as a 6 per cent growth is good enough,he said that a developing country like India must grow by at least 7 per cent and it can be achieved through right reforms.
While he raised the issue of corruption in India,he praised the economic liberalisation process that has been taken forward by all the governments over the last 20 years irrespective of the ruling party.
He said that the slowdown in Europe is not going to bottom out soon as the recession continues,there is rising unemployment,weak economic activity and an ageing population.
Well known for his prediction of a double dip recession for US and Europe,Roubini said that Europe may witness a triple dip recession.
He,however,showed faith in the recovery in the US and said that there is a pick up in growth,activity in shale gas,manufacturing and improvement in the labour market. He however raised questions on the long term continuation of the easy monetary policy saying it is not sustainable if it goes on for two more years.