India, China to be engine of global growth: WEF experts

Led by India and China, Asia will not only become the global engine for growth but will also increasingly exercise its influence on the rest of the world, experts at the World Economic Forum (WEF) annual meeting here have said.

"As their economic might grow, the region's (Asia) various societies will become more assertive and influential," WEF said in a statement, summing up the discussions on a session on 'The Rise of Asia' yesterday.

Among the speakers, who participated in the session, include President of Asian Development Bank Haruhiko Kuroda and President and CEO of Genpact India Pramod Bhasin.

India and China continued to grow at reasonable rates even when several developed countries witnessed economic contraction.

While India grew 6.7 per cent in 2008-09 and is expected to rebound to 8 per cent this fiscal, China jumped to 10.7 per cent during the quarter ending December 2009 from a low of 6.8 per cent during the period a year ago.

Speakers, while stating that it is not clear what will be the impact on the world with the rise of Asia as it is a diverse region, said focus on family and the primacy of relationships over written contracts in business may be two influential 'values'.

MNCs often find it difficult to understand that employee loyalty in Asia is to the boss – the individual – rather than to the company and brand name.

The rise of consumerism in Asia may also bring changes in the way Western and other companies relate to customers, the summary said.