High growth economies such as India and China that managed to grow even under the financial crisis will enjoy a major power shift as the world economic order changes under the recovery that is full of challenges.

Anshu Jain, member of the management board, Deutsche Bank and Chanda Kocchar, MD and CEO, ICICI Bank saw their views converge at this possibility, at the Hindustan Times Leadership Summit, 2009 while discussing on , ‘Is the Global Economic Recovery for Real.’

“As per our analysis, India and China could be back to contributing 50 per cent of the world’s GDP by 2020, which they did till the 19th century,” said Jain.

For India, the growth will largely come from manufacturing sector and the infrastructure investment.

“The world economic order will change and power will shift to Asia and emerging economies. Investments into manufacturing and infrastructure will accelerate growth in Indian economy,” said Kocchar.

While inflation seems to be a concern surrounding India, the efficient management of the high liquidity infused by the central banks worldwide has raised concerns.

“The amount of liquidity into the system is leading to a fear of second bubble forming which the markets are not reflecting,” said Jain.

The recovery however will not be homogenous and just like India and China have had a relatively easier ride, the developed economies will continue to find the going tough leading to a slower growth.

“The impact of the huge bailout packages have inherent risks and will constrain the bounce back,” Jain added. “We could have an overall growth rate of only 1-1.5 percent for the next decade.”