MUMBAI, Nov 26: European Central Bank president Jean-Claude Trichet said on Monday the future looked bright for emerging markets like India, saying their rapid growth was good news for the world economy as a whole.

Trichet, speaking at a banking conference in India’s financial capital Mumbai, also said growth in India and other emerging economies would help fuel demand for goods and services from eurozone countries.

“The present looks promising but the future is even brighter. The projections for long-term growth tells us that emerging markets are likely to become weightier in the world economy,” he said.

“The world economy may be better able to rely on the dynamism of these economies, in particular should growth in other regions lose some momentum.”

Trichet said emerging economies had grown at an average of more than seven per cent a year over the past six years. The Indian economy is growing at an annual rate of about nine per cent.

“Integration of India into the global markets has been rapid,” Trichet told banking executives, calling it a “young giant which is still growing.”

He noted that India’s share of world exports of goods and services stood at 1.5 per cent in 2006 -- triple the 0.5 per cent share it had about a decade ago.

“Vigorous growth in the emerging markets increases the demand for the goods and services where the euro area has competitive advantages,” he said.

Trichet’s comments came as the European Union said it was seeking fast agreement on a free trade deal with India ahead of a summit in New Delhi on Friday.

The ECB chief also expressed approval for India’s recent response to rising capital inflows.

Its stock market regulator moved last month to limit the anonymous buying of shares by foreign investors, with participatory notes that allow funds to buy shares without revealing their identity to be phased out within 18 months.

Indian markets have risen over 39 per cent this year on strong overseas fund flows of more than $16 billion for the year, which has sent the rupee soaring against the dollar.—AFP