India needs more stimulus package, says Jeffrey Sachs

Tags: Economy
India needs more stimulus package, says Jeffrey Sachs
Emerging economies like India and China are set to bounce back in the second-half of 2009, but they will have to take up right policies and stimulus packages, noted economist Jeffrey Sachs said today.

"China and India will certainly see a recovery in H2-09, but high-income nations will take longer to recover from the current downturn," Jeffrey told reporters on the sidelines of Mobile World Congress here.

Noting that mobile telephony is the single most powerful transformational tool in the development, Sachs said that it is one of the fastest growing sectors currently in the world.

"It is one sector that can provide all the economies fastest ways to narrow the gap in times of slowdown," he added.

Commenting on the current economic scenario, he said that "emerging markets will have to frame right policies and go for stimulus" and China and India might even emerge as more robust by 2010.

"In China, there are already lot of stimulus happening, but much more is needed in India," he added.

The global economy is currently facing a deep slowdown, with many of the developed world nations having plunged in recession. However, the emerging markets like India and China are still recording considerable growth rates in their economies, although they have also slowed down from the levels seen a few quarters ago.

Sachs is professor of economics and Director of Earth Institute at Columbia University, and advises many high-profile entities, including the United Nations.

"Problem in developed nations is more grave and therefore there would not be any quick bounce back," said Sachs, who is known as an international economics expert.

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