Even business rivals, known for exchanging only harsh words, could be seen hugging each other and laughing together at off-the-record parties.

Morgan Stanley's Stephen Roach says China has a lot of discretion to use fiscal or monetary policy to temper the impacts of the slowdown whereas India has many problems. Current account deficit, weak currency and high inflation come in the way of easing the monetary policy. A high government deficit restrains the use of fiscal policy.

Noting that Germany is going to participate in reducing the imbalances in the European Union area, Merkel said Europe has an opportunity to prove that it can be a role model and play a major role in the global economy.