Indopac Summit– An Oasis amidst Global Economic Turbulence

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INDOPAC Summit is the forum that produces far-reaching results for economy, businesses and investors. Indopac Summit, a major high-profile annual event, is going to be held in New Delhi , India in October 2012. It is a very important forum where world’s top leaders from political and economic fields meet to discuss and analyse at length the roadblocks and highways of economic growth and business opportunities. It is well-regarded as the harbinger of ideas and cautions that lead the future course of economic actions for the Asia Pacific countries.

INDOPACSUMMIT

INDOPAC SUMMIT 2012

Creating Growth in volatile times

Euro debt crisis is broadly talked in terms of five major countries at present – Italy, Greece, Ireland, Portugal and Spain, but as the experts observe, the crisis would have extensive consequences in the other parts of the world too. The Indian economy may also get a hard hit by this ongoing financial turmoil in the European countries.

The genesis of Euro crisis

The current debt crisis began with the 2008-09 economic recession in the United States. That time USA experienced the huge financial deficit that led global economic slowdown, which affected many countries in the world. Greece was the first one to catch the debt viral owing to its indefensible financial policies. The sweeping downturn of the economy around the world did not give time to Greece to embark on the much needed fiscal reforms. As a result, the country’s economic situation deteriorated further. The tax revenues were hit in the country and augmented budget deficiencies. Today, Greece’s debt is far higher than the actual size of the country’s economy.

Making the matter worse, the investors who invested in the Greece bonds demanded higher returns to compensate their losses. This sparked off a vicious circle for the economy of Greece, as it elevated the country’s debt burden because it had to borrow to pay off the investors. This led to extra financial strain. Investors having lost hope, made things worse for the other debt-ridden nations by making a rush for huge bond yields and so threw their economy out of kilter.

Induced effect on Indian economy

In today’s scenario of global village, India cannot remain immune to the effects of economic slump in the other countries. Indian economy is already under pressure of high inflation and now this Euro debt crisis may exacerbate the financial condition of the country. The worst hit sectors of Indian economy are likely to be FMCG, banking and, most prominently, the export sector. The significant budget deficit heightens the difficulties further. The monthly foreign capital inflow is severely affected. However, as per the observations by economic pundits, India is sailing on a safe path despite having been hit by the fiscal strain.

Precautions for Indian economy

There is a strong case for Indian economy to adopt safety measures. Here are outlined a few:

» Bilateral development banks in India must increase their reserve base
» Indian economy should move fast on the path of having Free Trade Agreement with EU
» India must reduce its debt liabilities by opting for austerity measures and restricting the subsidies
» Credit flows should be reduced by the banks

Asia holds the torch to economic recovery

Despite of lackluster economic scenario across the globe, it has been noted that Asia holds the key to global economic revival. Asia is moving to achieve 35% of World’s GDP by 2020. There is a need to locate the sectors that hold the promise to drive growth and earn good returns on investments.

Developing a foresight for growth & investment opportunities

INDOPAC Summit is the forum that produces far-reaching results for economy, businesses and investors. Indopac Summit, a major high-profile annual event, is going to be held in New Delhi in October 2012. It is a very important forum where world’s top leaders from political and economic fields meet to discuss and analyse at length the roadblocks and highways of economic growth and business opportunities. It is well-regarded as the harbinger of ideas and cautions that lead the future course of economic actions for the Asia Pacific countries.

Indopac Summit 2012 lays down the agenda to arrive at important information and suggests beneficial policies for the regional economies. Indian business stands to make a windfall from the enlightening sessions of the 2-day-long summit.

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Sanjeev Kalia
High Profile Events Asia
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