India can recover faster than China: RBI Deputy

[kawaraj]

India can recover from global economic slowdown faster than China as the economy is driven by domestic consumption, but the country needs to "get its act together" for this to happen, Reserve Bank deputy governor Anand Sinha said in Beijing on Sunday.

Sinha also said "confidence


issues like the general pessimism and not-so-good-feel factor also affected the economy".
"Both economies (India and China) are affected by the global economic slowdown but India being a domestic consumption driven economy could recover faster," he said.

"But for that we have to get our act together. Being dependent on domestic economy, we would be less affected by export sector performance. So, that could be our strength. But we have to get our act together and whatever weaknesses we have to get around them," he said responding to a question.

When asked what should be done by India to arrest the slide in growth, he said, "We have to get hold of inflation. If we get hold of it, growth will have better prospect. Once growth takes off things would be better.

Retail inflation in India is in double digits at 10.03%. RBI had been repeatedly saying that focus of its monetary policy is on controlling inflation.

"We must realise that even if we put our domestic situation on sound footing, what happens in the rest of the world, we cannot be totally immune to that. So you will not have the same growth rate as we would have had if the world economy is in good shape."

Sinha also said "not so good feel factor", besides the global economic slowdown, for the current domestic situation.

"One reason is global economic slowdown. That has affected us is the trade channel. We are not export dependent but exports suffered due to global economic crisis. Apart from trade issues, confidence issues like the general pessimism and not so good feel factor also affected the economy," Sinha said apparently referring to criticism about policy paralysis.

"Sentiments are very important when it comes to taking business decision," he said.


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India can recover faster than China: RBI - Hindustan Times

 

[cirr]

Sure，sure。 Only that the Indian economy also went down much further in the first place。

An economy that's supposed to be driven by domestic consumption is doing much worse than the one that's thought to rely on the lifeline of exports。

Why？

While China，which economy is considered more dependent on exports than its so-called consumption-driven neighbour in the south， is ploughing ahead at 7.6% growth，India is chugging along at or about 5%。

The 30% diffrence in growth rates of the 2 countries has been one constant observed of the last 30 years。

Despite of what the article argues，or rather precisely because of the arguments the article uses for its conclusion，I‘d bet my house on the assertion that China will recover earlier and faster than India。Again！

 

[Hellraiser007]

Beware of Chinese trolls

 

[AnnoyingOrange]

Sure，sure。 Only that the Indian economy also went down much further in the first place。

An economy that's supposed to be driven by domestic consumption is doing much worse than the one that's thought to rely on the lifeline of exports。

Why？

While China，which economy is considered more dependent on exports than its so-called consumption-driven neighbour in the south， is ploughing ahead at 7.6% growth，India is chugging along at or about 5%。

The 30% diffrence in growth rates of the 2 countries has been one constant observed of the last 30 years。

Despite of what the article argues，or rather precisely because of the arguments the article uses for its conclusion，I‘d bet my house on the assertion that China will recover earlier and faster than India。Again！

Making Sense Of China's Numbers - Forbes

 

[indiafriendly]

CD is coming with his bookmarks.....

 

[shuttler]

Sure，sure。 Only that the Indian economy also went down much further in the first place。

An economy that's supposed to be driven by domestic consumption is doing much worse than the one that's thought to rely on the lifeline of exports。

Why？

While China，which economy is considered more dependent on exports than its so-called consumption-driven neighbour in the south， is ploughing ahead at 7.6% growth，India is chugging along at or about 5%。

The 30% diffrence in growth rates of the 2 countries has been one constant observed of the last 30 years。

Despite of what the article argues，or rather precisely because of the arguments the article uses for its conclusion，I‘d bet my house on the assertion that China will recover earlier and faster than India。Again！

these indian cheerleaders are senseless dont know how much potential we have apart from the obvious wealth on our balance sheet which is much much larger than their gdp.

I shall wait for the time when the credit rating agencies strike the last few nails on india's coffin downing its level to JUNK status

typical cheerleaders have nothing to contribute but punching out one liner rubbish wasting their limited power supply time per day!

 

[Chinese-Dragon]

The same typical big-mouth boasting.

Here is the boasting:

India to overtake China as fastest growing economy - YouTube

-------------------------

Here is the reality:

IMF cuts India growth forecast to 4.9% - The Times of India

Pranab seeks calm after S&P downgrade - Hindustan Times

Standard & Poor's warns India of a downgrade to junk - The Times of India

 

[kawaraj]

I am sorry but some data is really disappointing....

Exports drop 10% in August - Hindustan Times

 

[Chinese-Dragon]

Sorry for the bad news Indians, looks like the boasting turned out to be wrong (as usual).

Today's news:

Financial Times - China data herald end of slowdown

November 9, 2012

Chinese industrial production, investment and retail sales all accelerated in October, confirming that the world’s second-largest economy has ended its nearly two-year slowdown.

And here is some other nice news from the same article, Chinese inflation is down to 1.7% as well.

 

[northeast]

Indian big mouth is pretty entertaining though.

 

[timetravel]

Guys Chinese GDP and their numbers are from ccp.

It doesnt get simpler then this:

ccp dont let its own citizens KNOW even about a BLIND MAN, fearing it will loose grip on the people.

So an economy which is doing bad is 10000 times worse news then a BLIND MAN. So you know what numbers ccp will give out.

if a domestic consumption economy like India is having 6% growth, then how come a export oriented economy is having 7%. Alien economics surely. The actual Chinese GDP has contracted i.e China is having negative growth for the last 3 years. The Chinese growth from 2009 to 2011 has actually been somewhere between -2 to .5 percent only. The Chinese economic growth for 2012 could be b/w -1 to 2%.

Actually other countries calculate their GDP growth and then forecast, but CCP first decide what is the politically RIGHT number for GDP growth to be telecast, and then does the calculus to achieve it on papers.

 

[timetravel]

Forbes:

How Will China Pay Off Its Debt? - Forbes

"And if you believe Beijing has been overstating its GDP recently—it has, at least starting from the last quarter of last year—"

 

[HongWu]

What a joke. They are a third world $1.5 trillion economy while China is almost 6x bigger at $8+ trillion. "Recovered" or not, still more starving Indians than Sub-Saharan Africa.

 

[Chinese-Dragon]

if a domestic consumption economy like India is having 6% growth, then how come a export oriented economy is having 7%. Alien economics surely. The actual Chinese GDP has contracted i.e China is having negative growth for the last 3 years. The Chinese growth from 2009 to 2011 has actually been somewhere between -2 to .5 percent only. The Chinese economic growth for 2012 could be b/w -1 to 2%.

You have no idea what you are talking about. Unlike you, I am going to use actual sources and data in my argument.

Financial Times - China unlocks the right kind of growth

China has never lacked for growth over the past decade but it has suffered from the wrong kind of growth, developing a dangerous reliance on investment.

Tucked into its latest economic data was evidence that the country has finally started to address this problem. Consumption clearly surpassed investment as China’s biggest growth engine, reinforcing a trend that emerged earlier this year – and something that has rarely happened over the past decade.

Consumption is now the main engine of China's economic growth, followed by Investment.

"Net exports" contribute ZERO to Chinese growth. In fact, net exports are now more likely to be a drag on China's economic growth. As the chart below clearly shows:

Pedalling prosperity | The Economist

 

[timetravel]

Consumption is now the main engine of China's economic growth, followed by Investment.

"Net exports" contribute ZERO to Chinese growth. In fact, net exports are now more likely to be a drag on China's economic growth. As the chart below clearly shows:

Pedalling prosperity | The Economist

there is something about CONSUMPTION - it is that simple thing, that consumption is driven by people, which is driven by heir needs, nature and habits. 1 billion Chinese don't change their consumption habits due to ccp calls and their income did not increase, on the contrary IT DECREASED due to closure of exports. So there is decline of money for those millions who lost jobs due to closure of exports. So the consumption would go down even more then the previous years.

You cannot justify these numbers based on increase in consumption. Rather it is a poor attempt at explaining the faked numbers for GDP growth, when there is negative growth infact for the economy.