India, China must strengthen consumer market

New Delhi, Nov 9: Indian and Chinese economies have to strengthen the internal consumer market in order to avoid a slow down as in the case of the United States' economy, Fortune Magazine International Editor Robert Friedman said today.

Fortune, a part of the Time Inc, is known for its Global Fortune 500 list, that it brings out every year, listing global companies based on their revenues. It also carries out indepth research on the position of global economies in comparison to others. ''With increasing income levels in India, more and more people are buying consumer durables such as refrigerators, air conditioners etc, which is a good sign for the country. The same is not true with the Chinese economy, which is mainly export-driven,'' Mr Friedman told reporters here.

If China focuses more on the internal market rather than on increasing its exports, it will be in a better position to avoid the impact of slow down in the US economy, he added.

Meanwhile, India should also make its consumer market more strong so that it does not face any slow down following the US.

Besides, India also needs heavy investments in the infrastructure and agriculture. ''At least 40 per cent of the agriculture produce does not reach the market due to infrastructure problems,'' he said.

On outsourcing to India, Mr Friedman said it is a healthy development. ''The US has not faced any rise in unemployment as was feared earlier. The controversy regarding it in the US and Europe is mainly on account of losing jobs there,'' he said.

Fortune Magazine today also announced 2007 Global Forum on ''Mastering the New Global Economy'' that will be held here from October 29-31 next year.

More than 150 Indian CEOs and government officials and 300 global participants are expected to attend the forum. ''From India, Infosys CEO and Managing Director Nandan Nilekani, Wipro Chairman Azim Premji, Reliance Industries Chairman Mukesh Ambani have already committed their presence,'' Mr Friedman informed.

Confederation of Indian Industries will be the India host partner for the event. An MoU was today signed by Fortune Conference Division Executive Director Robert Bierman and CII Director General Lt Gen (Retd) S S Mehta.

UNI