Erstwhile Reserve Bank of India governor Raghuram Rajan on Tuesday averred that for India it is very premature to claim that it will replace China in terms of influencing the global economic growth.
However, it is estimated that the situation might alter as India has gained the fifth spot and have grown firm over the world’s economy.
At a World Economic Forum (WEF) press briefing, Rajan mentioned that any sign of recovery in the Chinese economy would surge global growth prospects. By referring to the US, he said housing sales are not active here but prices are dipping constantly.
“Is it all gloom and doom? Not probably…If Mr Putin decides to end the war, there would be certainly an upside,” Rajan mentioned.
“China is working its way through pandemic and there would be a Chinese recovery this year, probably as early as March or April. Some of that would be in domestic services which may not have any impact outside. But any improvement in manufacturing may have some impact by way of softening prices outside,” he said.
Talking about India, Rajan said, “The argument that India will replace China is very premature as India is much smaller economy as of now.”
“But over a period of time, that may change as India is already the fifth largest economy and it can keep growing,” he averred.