Mumbai: A recession in the US would have limited impact on countries like India and China although no economy in the world can be fully insulated from a slowdown in the US, commerce and industry minister Kamal Nath told the World Economic Forum.

"No economy can decouple itself from the US," he said, adding, "I don't see the impact as that substantial in India."

Speaking at the economics panel at the annual World Economic Forum in Davos, Nath said the world was for the first time facing a US downturn with two other engines of world growth - China and India.

Domestic demand has been a strong feature of India's recent growth, and to that extent it was not heavily dependent on US demand, he said.

The WEF meet, which was inaugurated by Kamal Nath, opened a discussion on the Asian Renaissance, which was drawing the attention of the world.

Commenting on the recent global market sell off, Kamal Nath felt India would be out of it soon as the changing global economic fundamentals are shifting with increasing importance for Indian economy.

He said the rules of international trade are changing and the West no longer can remain the custodian for such rules. Managing growth is the biggest task ahead of us, Nath added.

Kamal Nath was the chief panelist at the discussion which had Shashi Tharoor, former UN diplomat and Kishore Mahbhubani, dean of Lee Kuan Yew School of Public Policy, Singapore among others as panellists. The event was attended by members of the young global leaders, which operate under the aegis of the WEF.

 (Also see: US slowdown would affect Southeast Asia most: IMF)