New Delhi, Apr. 29: Commerce and Industry Minister Kamal Nath today identified three challenges facing the world.

The challenges were food, fuels and fertilizers.

Speaking at the session on "Globalisation the New Mantra, But How do we Remain Competitive?" here today, Nath said the ongoing global food crisis is because of the growing use of agricultural land for bio fuels production. He further added that his Ministry is forced to ban rice exports to safeguard Indian interests.

Nath said greater engagement with the world has led Indian industry to become globally competitive. While congratulating the Indian industry for living up to the challenge he said the world had started taking note of India since Indian industry has become globally competitive.

Nath said that India's engagement with major trade partners for concluding free trade agreements was also helping in making industry in the country competitive.

He also stressed on the inevitability of Eastern countries as drivers of world growth. He said along with the US, the East Asian economies of Vietnam and Thailand have now become engines of world growth.

On inclusive growth he said sharing the benefits of globalisation with 300 million people living below one dollar a day remains the biggest challenge for India. He further added that transformation of rural India is the next biggest revolution waiting to happen in India.

Earlier, Nath also released the new CII tie.

Switzerland’s Minister for Economic Affairs Doris Leuthard said her country has greatly benefited from globalisation and said that despite being a small country trade has helped Switzerland to become a medium sized super power.

She expressed happiness over greater bilateral engagement between India and Switzerland and divulged the information that negotiations for broad based bilateral trade and investment between India - EFTA have started in January.

Earlier, KV Kamath, Vice president CII said last two years have seen coming of age of Indian industry and said that last year outward investments from India were more than inward investments into India. On problems of globalisation he said globalisation has led global problems to become local. (ANI)