Union Finance Minister Arun Jaitley on Saturday said that the Indian economy is insulated from the global slowdown, as the factors responsible for slowdown around the world, such as commodity and oil prices, are having a positive impact on the Indian economy, as India is the buyer of such products.
"The factors that are slowing down the world, namely commodity prices and oil prices, India is net buyer of these products. So, what is adversely affecting the world, is helping us," Jailtey said, while addressing Pune's top 20 industrialists here.
Jaitley further said that the export-led China is now transforming into domestic consumption-based economy and has moved from manufacturing to service sector as a result of global slowdown.
"In the last 30 odd years, China grew at an average of 9 percent plus. No other country in the world has done that. And that is how they transformed the entire economy. Their current situation is that they were export-led. The world economy is weak, so the world can buy less. So their exports are going down. It impacts on their manufacturing. Their salary bills are going up," Jaitley said.
"China has now changed its strategy. New Chinese normal is a 7 percent growth. The IMF believes it may be lower to 6 percent or even lower. Their model is now changing from export-led growth to domestic consumption, from manufacturing to services. In the last decade China has shouldered the world economy because 50 percent of the global growth came from China," he added.
