Asian countries need to consume as much as they produce, according to Asian Development Bank’s managing director-general Rajat M Nag, in order to cope with the after effects of the financial crisis. For that, the rebalancing of growth is mandatory.

“The biggest lesson for Asia from the financial crisis is that you have to have a much more balanced economic structure,” said Nag, on the sidelines of the opening day of the World Economic Forum. “Therefore, rebalancing growth is very important. Asia, probably, became too dependent on exports to certain groups of countries.

“But now, we’ve got to think of ourselves as a consumer as much as a producer. That re-balancing is very important.”

Addressing a session on India’s economic outlook, planning Commission de-puty chairman Montek Singh Ahluwalia said that while demand side factors remained muted due to the financial crisis, “a robust supply side factor would drive India’s growth story in years to come.”

Reiterating the same, Manila-based ADB’s Nag said that while exports were still important still, it was time to region looked at more domestic and regional solutions.

“What we are saying is that you have to start building a domestic consumption base, which is where rebalancing of the growth is. The risk to this growth story is if the western economies – US and Europe -- don’t grow. But over time we are hoping that there will be enough of a demand domestically and regionally so that you are not exclusively dependent on a certain part of the world,” said Nag. Two-thirds of what China produces is exported, whereas only 40 per cent of Indian produce is exported.

However, if there’s one thing that separates the Chinese trajectory of growth and the India, on the exports front, it is China’s focus on implementation. “China has laser focus on results, outcomes and implementation effectiveness,” said Nag.

ADB’s forecast for India is 6 per cent growth in 2009 growing to 7 per cent in 2010.