Hyderabad : The European Union crisis is wrongly being called a sovereign debt crisis as the current situation in the EU is a result of fiscal mismanagement, said Dr Y.V. Reddy, former Governor of the Reserve Bank of India, at the inaugural of the 4th International Conference on India: Emerging Economic Power – Quest for EU and World Economic Order at the University of Hyderabad on Wednesday. The Indian economy is vulnerable to shocks like oil price rise, food security and fiscal imbalances, he said. With all these issues, India does not contribute to the global imbalance. Asian countries like China and those in the Far East are not vulnerable to fiscal shocks but are highly dependent on exports, he said. The country's economic growth will depend on investments, and investments in turn will depend on our savings, he said in his keynote address on ‘Indian Economy and World Economy at turn of 21st century'. India is likely to be a big entity in the world economy, he said. He cautioned that the road ahead for the global economy is bumpy. Technology is moving towards globalisation but people are not moving as fast as technology. The three-day conference is being organised by the Centre for Contemporary India Research and Studies and the Institute of International Relations, University of Warsaw, Poland, in collaboration with University of Hyderabad. More than 15 foreign delegates from European countries are participating in this conference which will see discussion on topics like ‘India Domestic Economic Reform: Dynamics and Challenges', ‘India and Asia Economy', ‘India and EU Economic Cooperation', ‘India and New Economic Challenges', etc.
HBL
