News: 'India to contribute significantly in globalisation'

(PTI 16/12/2006) New Delhi - The World Bank today said India would contribute the most in the process of globalisation, which could spur growth in average incomes in the next 25 years in the world. However, unless globalisation is managed carefully, it could be accompanied by growing income inequality and potentially severe environmental pressures, World Bank Country Director Fayez Omar said at the launch of a report by the multi-lateral agency. "India would be on top of the list in contributing toward globalisation due to size of its population and performance of exports," Omar said. However, India would have to face the challenge of sustaining its economic growth and ensuring equitable distribution of this growth," he added. GDP in South Asia is estimated to have expanded at a very rapid pace of 8.2 per cent in 2006, with India leading the way at a GDP growth of an estimated 8.7 per cent, backed by non-agricultural growth in excess of 10 per cent. "This strong growth in the region is fueled by economic reforms that have promoted private sector-led growth, sound macro management and greater integration with the global economy," the report, Global Economic Prospects 2007: Managing the Next Wave of Globalisation, said. The report was launched today by Minister of State for Planning M V Rajasekharan, World Bank Acting Country Director Fayez Omar and Assocham President Anil Agarwal here. By 2030, 1.2 billion people in developing countries would belong to the "global middle class", up from 400 million today, constituting 15 per cent of the world population.