U.S. economic official all praise for Indian economic model
By siliconindia   |   Monday, 18 October 2010, 08:39 IST   |    1 Comments
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Mumbai: Larry Summers, Advisor to U.S. President Obama and also the White house economic official admired the Indian approach to economic development, in a speech to Mumbai's business and cultural elite. He described it as 'people-centric' and driven by growth in consumption rather than exports, a reference to China. According to him, the term described 'a developing state driven not by mercantilist capitalism or exports but a people-centric focus on growing levels of consumption based globally.' The comment from the U.S. official comes at a period of time when many foreign economists and policy makers lamented that the fractious democracy in India could not build infrastructure and lift people out of poverty at a respectable pace and brings much optimism to the country. Summers' diplomatic speech which a gratifying picture of relations between the United States and India, seems as a charm offensive before President Obama's first visit to Indian as President early next month. An impression was gaining currency in recent months about the loss of gloss and pre-eminence in economic and political relations between India and the United States because of a string of perceived slights on both sides. U.S. senate's H1B visa price hike and Indian Parliament's law that made suppliers of nuclear power equipment subject to liability, a position that is at odds with international convention have been brooding ground for coercion between the two nations. Summers's comments on the Indian economic model echoed other recent praise for the country. This month, The Economist magazine, for instance, had a cover that read, "How India's growth will outpace China's." The comments appear to mark a turning point in Western impressions about India.

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