"We do not view China as a rival, but as a friend. The world is big enough to accommodate the growth ambitions of both the nations," Manmohan Singh said.
HANNOVER: Declaring that India was destined to achieve a growth rate of 10 per cent in the next five years, Prime Minister Manmohan Singh has dismissed suggestions that China was India's economic rival, saying both countries have enormous potential to
change the course of the world.
“At the moment, the two countries complement each other. Our bilateral trade is booming. This was unimaginable five years ago. We do not view China as a rival, but as a friend. The world is big enough to accommodate the growth ambitions of both countries,'' he said in an interview to Die Handelsblatt, a German financial magazine.
Noting that there were problems between India and China relating to the border, he said the two countries were making progress on the issue as well. ''Cooperation between the two most populous and fastest growing economies is important for peace in the region and the world. And this is also of decisive importance for Asia to become the political and economic epicenter of a new world order.''
Dr Singh said if India continued to grow at 8 per cent to 10 per cent, it would stimulate the world economy.
''Unlike other countries, we are no mercantilists. We do not want to horde unlimited currency reserves and we also have a large trade deficit. If Europe and US help India in achieving its growth targets, they are doing themselves a favour as well.''
Dr Singh said the process of economic reforms in India had clearly accelerated the pace of growth. Since 1991, the Indian economy had grown at an average rate of 6 per cent and in recent years even at the rate of 7.5 per cent to 8 per cent. In the next five years, it was the country's endeavour to increase the growth rate to 10 per cent.
Asked if the growth rate of 10 per cent was realistic, the Prime Minister said it was achievable.
''India's saving rate has increased to 29 per cent of GDP. Parallel to this, the investment rate has increased to 31 per cent. This has made it possible for us to have 8 per cent economic growth. The saving rate will increase further in the coming years. Our demographic profile, which increases the number of the employed, will make this happen. The investment rate will soon grow to 35 per cent to 36 per cent. Thus our society is headed towards a growth rate of 10 per cent.''
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