India, Global Economy | featured news

India’s problems have dampened hopes that it, along with China and other non-Western economies, might help revive global growth.

After several official predictions that India would grow by 7-8% in 2011-12, the finance minister finally admitted in his Budget 2012 speech that the growth would be 6.9%. The actual figure may be lower at 6.5%, thanks to the statistical error in sugar production, which dragged down January's industrial production growth figure from 6.8% to 1.1%.

As his global teleconference broke up in disarray on September 11, 2001, a top economist at a U.S. investment bank began to ponder what the attacks on the United States might tell him about the future shape of the world.

Measuring the country’s economic development against that of China seems to be a national obsession in India, but the rivalry seems to be largely one-sided.