“In the five years prior to the crisis, the Indian economy grew at an average rate of 9 percent. Following the crisis, it slowed down to an average of just over percent,” Ahluwalia said Thursday during a UN General Assembly debate on “State of the World Economy and Finance in 2012″.
“We believe India has the potential to grow at rates between 8 or 9 percent for the next twenty years and to do so in an inclusive manner.”
Noting that there are many challenges India has to face domestically to achieve this target, Ahluwalia said it “would be greatly helped if the global environment is supportive, and we are willing to work with others to make it so.”
Ahluwalia cited several things that the global community do to restore growth in the developing world. These included an early agreement on the resolution of the sovereign debt problem in the Eurozone and a well functioning international financial system channelling resources efficiently around the world.
“Given the much higher growth potential in developing countries, a well functioning financial system should ensure a sufficient flow of long term capital towards them,” he said.
Calling for an early conclusion of the Doha Development Round to “send a major positive signal to the global community, Ahluwalia said: “The economic woes we face today cannot be overcome without the major developed countries taking the lead to stimulate economic growth.”
Steps at the national level must be accompanied by a broader based advance in improving global governance, he said seeking more voice and participation for important developing countries in the decision making structures of the international financial system.