Posted on 11/17/2008 11:37:21 PM PST by AmericanInTokyo
‘Developing Asia to record healthy growth rates’
Our Bureau
New Delhi, Nov. 16 Asian Development Bank (ADB) does not expect a full-blown financial crisis in India even as it forecasts a lower economic growth of between 6-7 per cent for 2009, lower than the 7.8 per cent expected this year.
“We don’t expect a financial crisis (in India) because of the fundamentals. The economic side has not worsened. Developing Asia will slow down but continue to record healthy growth rates,” Mr Rajat M. Nag, Managing Director-General, ADB, said at the India Economic Summit 2008 here on Sunday.
He highlighted that China’s economic growth is expected to be about 9.7 per cent in 2008, lower than 10.8 per cent last year. “In 2009, we expect China’s growth to lower down to under 9 per cent,” Mr Nag said.
He underscored the need for countries to look beyond the immediate crisis. “The immediate crisis has to be dealt with but not at the cost of the long term. One must remember that only those economies that kept their eyes on fundamentals succeeded,” he said.
Mr Nag noted that the Asian financial sector was not exposed to toxic assets of the US and that it was resilient.
"FEDEX HOPES TO CONTINUE WITH GROWTH MOMENTUM IN INDIA Tue. November 18, 2008; Posted: 12:36 AM NEW DELHI, Nov 18, 2008 (AsiaPulse via COMTEX) -- Global courier major FedEx Services on Monday said it expects to continue with its growth momentum in India, as its business in the country has not been impacted much by the worldwide economic slowdown. "In the past, we have registered double-digit growth annually," FedEx Services Senior Vice-President for International Marketing Rajesh Subramaniam said on the sidelines of the World Economic Forum's India edition here. During the last three years, the company had more than tripled the number of frequencies in India, and FedEx's employee strength had also crossed the 3,000-mark, he added. The global economic slowdown has not affected the company's India's business much, Subramaniam said. He said the company had recently started a hub facility in Delhi and teamed up with local partners to expand its India business. FedEx's subsidiary FedEx Express' global business (outside US, where it is headquartered) accounted for around 40 per cent of its total annual revenue and India constituted a major market for the future, he added. He, however, refused to disclose any figures regarding their revenue expectations from India. "
THE only way India will escape this is if the upturn in the US and Europe starts before the down turn in India does serious damage. India’s export to GDP ratio is much lower than say China’s but much of the consumption growth has come from the populace that has gotten richer from the export growth, so to say that India will not be seriously hit is only true in the short term. We may weather this crisis for another 2-3 quarters. By then, the end of this mess better b in sight, or else India will start its decent.
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