According to shipping minister GK Vasan, the Indian government has come up with a plan to boost its country’s economy after its most recent slide, with the help of the infrastructure sector.
“Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5%, which was the lowest in the last nine years,” he said.
Still, for the global situation, 6.5% isn’t too bad.
“Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high, or invest to spur the growth itself. We need to seize this moment,” he said.
According to Andrew Pease of Russell Investment Group, “The U.S. economy is in better shape than Europe and that’s positive.” Pease is a Sydney-based senior investment strategist for the firm’s Asia-Pacific region. “Given the huge clouds hanging over the global markets from Europe and uncertainties in the Chinese property market, it’s very hard to be optimistic at this stage. Investors are also pricing in increased geopolitical risks.”
Still, as optimism towards the U.S. economy heightens, Asian stocks rise as well. Asia’s determined growth has also lessens concerns regarding the region’s real estate industry.
The MSCI Asia Pacific Index increased 0.14 point, or 0.1%, to 110.54 in Tokyo. Japan’s Nikkei 225 Stock Average also gained 0.5%, and South Korea’s Kospi Index rose 0.9%.