India now flavour of the world: George Soros

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 28/05/12 Are Mutual Funds betting on Nifty?

Q: But I think the opponents of this treaty or this sort of engagement between India and US would argue that America is now getting excessive influence over Indian domestic policy of which the nuclear policy has been a cornerstone?

A: I think it is good to have better relations between India and United States. However, you have a very serious problem with the spread of nuclear weapons in the world. America talks about the danger of nuclear weapons falling into the hands of terrorists. I am concerned about nuclear weapons falling into the hands of states because if you got many states with nuclear weapons, eventually a nuclear war is bound to happen because there are too many players and this is not a stable situation.

So I think there is a need to re-negotiate the non-proliferation regime. Unfortunately, you don't have the political will at the moment and I think that is one of the dangers for our civilization. We are doing pretty well and we are alive and we feel pretty good about getting rich and so on. But I think that our civilization's survival; the survival of our children is not at all assured and you have got a couple of dangers. One of them is nuclear proliferation - potential for nuclear war. Another one is global warming and the people in India are not at all aware of this. I am really shocked by that.

Q: I think India is fighting its own battle against poverty. Therefore these issues, while extremely important, haven't quite touched the lives of people. Would you redraw finally for us the map of the world in 2025 - the economic map of the world in 2025 and 2050. A lot of people have talked about the shift of economic power towards Asia Particularly China and India. How real is that going to be? Will that lead for instance to a decline in the developed societies of Europe and America?

A: There is no doubt that there is a tremendous shift going on. I think China and India are rising powers. I am concerned whether the world can accommodate that and so you pass off global warming. But I am afraid we are going to cook together; we all of us are going to cook together and India feels that it hasn't got their share of the world's wealth so they have to keep on going. America ignores it.

Q: So are you saying that we are on the edge of an environmental disaster?

A: For instance, there is this thing about frogs - if you warm it up, slowly then frogs are cooked. If you light the fire, they can jump out. We could jump out but we are not jumping out because it's happening slowly. I think we really are going to cook together and I think it's important. I think it is America that has to take the lead but it's important for people in India to be aware that there is this danger of global warming and that the use of coal, which is the only source of energy, that can maintain the rate of growth in India, China and United States. Coal is very polluting and when we build 1,000 power plants, that is planned for the world between now and 2025, it will assure that we are going to cook together.

Q: So even if we grow at 9%, are you saying the country needs to be worried; it's not that India can insulate itself and say that it is an island of growth and that environmental disaster is the real danger, irrespective of boundaries?

A: Yes, Environmental disaster is the real danger.