Davos: Leading a strong Indian delegation at the World Economic Forum Annual Meeting, senior minister Ashwini Vaishnaw on Thursday said the country has given a clear message about its willingness to partnerships across the economic spectrum, and the country commands a strong resilience against global debt worries.
In an interview with PTI here, the minister also said that all ten states present here have very effectively showcased their potential as per the mantra of cooperative and competitive federalism given by Prime Minister Narendra Modi.
“India’s message here is very clear on how the prime minister has transformed and opened the Indian economy in the last 11 years. This time’s message is partner with India and subscribe to the future,” he said.
The minister said India has also told the world that it is open to ideas as well.
“Be it semiconductor industry, AI, manufacturing, green energy or any other sector, we want to partner with the world everywhere,” he said.
On participation by as many as ten states, he said, “All states are working hard and when states develop, the country automatically develops. The experience Prime Minister Modi has had at the state level is benefiting the entire country now.”
Asked how much concerned India should be about the mounting debts in the rich world, Vaishnaw said India is among the few countries with a low debt level, given its macroeconomic and financial position.
While the central government’s debt level is 57 per cent of GDP, it goes to a maximum 84-85 per cent at the aggregate level after including all states, which is still low compared to developed countries having 120 per cent, 160 per cent and in some cases as high as 250-280 per cent, the minister said.
Those high levels of debt are naturally unsustainable, he said.
“When those mountains of debt unravel, it is important to understand that what would be the impact for countries like India,” he said.
“The good thing is that India has consciously kept its dollar debt low, and India’s debt portfolio has been mostly kept in rupee.
“By keeping dollar or foreign currency debt low, the resilience of the Indian economy grows. This is a conscious effort to de-risk India from this risk,” he said.
