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Over the next two to five years, it is highly likely that India will continue its 8 percent to 10 percent annual growth, while China is equally likely to experience a "hard landing" adjustment from excessively export-oriented to more domestically-oriented growth, including slower growth for at least a couple of years.
Both nations face obstacles to continued high growth, but India is on a more balanced growth path, with growing momentum from private sector investment, including for urgently needed infrastructure. China has had higher, 10 percent to 11 percent growth, but half or more of the growth has been accounted for by increased exports of manufactures and related investment. External and internal pressures to shift toward more domestically-oriented growth, including through a major revaluation of the yuan, are building, but the restructuring faces formidable obstacles.
Source: Industry Week, http://industryweek.com
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