Asia needs push for steady growth: Pranab Mukherjee

NEW DELHI: India has cautioned that despite its blistering pace of growth, Asia is not in an autopilot mode and would require careful steering with emphasis on inclusivity, improvement in governance, removal of infrastructural bottlenecks and regional cooperation.

"...despite its blistering pace of growth, Asia is not on the autopilot mode and in fact would require careful steering to realise the goal of a prosperous Asia which will not only make lives of Asians better but augur well for world economic growth," finance minister Pranab Mukherjee said at governors` Seminar on `ASIA 2050` at the annual meeting of the Asian Development Bank in Hanoi.

The ADB study has predicted that Asia`s gross domestic product (GDP) would soar to $148 trillion and account for 51% of global output in 2050.

It has said that an additional 3 billion Asians could enjoy higher living standards, but only if Asia sustains its present growth momentum and addresses daunting multigenerational challenges and risks.

The ADB report considers two scenarios — one termed as Asian century and the other as middle income trap. India could account for 14% of the world`s GDP under the Asian century case in 2050, while if India gets trapped in the middle income trap it would account for just 6%.

India would also be the country with the world`s largest middle class, considered to be a key element in the development of a country. "Asia`s rise will be led by PRC (China), India, Indonesia, Japan, Republic of Korea, Malaysia, and Thailand," the report said.

Regional cooperation and integration through transport and energy connectivity could pave the way for the emergence of a vibrant regional market, he said.

"Strengthening cross border infrastructure linkages in transport, communications and energy sectors would help in addressing bottlenecks that are impeding growth," he said. The finance minister also said if Asia has to reach the level of an affluent region, achieving broad-based, inclusive and sustained growth would be a paramount necessary. About one billion people, the majority of them Asians, live below the poverty line and face chronic undernourishment.

"If we fail to achieve inclusive growth, we will end up with islands of prosperity within a largely poor Asia," Mukherjee said.

Mukherjee also said Asian countries should aim to transform their economies into knowledge-and skill-based economies over the next 40 years to ensure high sustained growth. He, however, said that the countries within Asia should strive for better governance and transparency in policy making.