NEW DELHI: India will have to keep a close watch on political backlash against globalisation and also developments in China as both have implications on the domestic economy, the Economic Survey 2016-17 said today.From India's perspective, it said, the political carrying capacity for globalisation is relevant not just for goods but also services. The world's service exports-GDP ratio is about 6.1 per cent. "If India grows rapidly on the back of dynamic services exports, the world's service exports-GDP ratio will increase by 0.5 percentage points --- which would be a considerable proportion of global exports," the Survey said.Put differently, India's services exports growth will test the world's globalisation carrying capacity in services. In contrast, India's expansion may well prove much more balanced. "In sum, the political backlash against globalisation in advanced countries, and China's difficulties in rebalancing its economy, could have major implications for India's economic prospects.

Source: Economic Times January 31, 2017 14:30 UTC