India Passes China to Become Fastest-Growing Economy

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Well good for China and India. Looks like there really is good investment opportunities in China and India.

Late Monday, India’s statistics ministry surprised economists when it unveiled the new numbers for the growth of India’s gross domestic product. It ratcheted up India’s GDP growth figures using a new methodology that pegs expansion in Asia’s third-largest economy at 7.5% last quarter and 8.2% the quarter before that. Economists and the ministry, using the old methodology, had originally said growth was closer to 5.5% during those quarters.

“There’s no comparison between these growth rates because of the size of the economy of China,” said Ashish Kumar, director general of the Central Statistics Office as he announced the new GDP growth numbers. “If this kind of growth continues and China continues to perform at a lower level, then still it will take 20 to 30 years to catch up.”

This caught me off guard. Thats staggering to think. 30 years to catch up? China is really making moves. I've said it before but my grandmother was always afraid of the Chinese, she always said they would start in California and march across the continent Ghengis Khan style.

The Asian economies are exploding while the west dies, what lessons can be learned from whats happening in the global economy?

a reply to: onequestion

I think it is great, economic growth makes people's lives better and reduces personal discomfort.

The more comfortable everyone is, the less likely there will be war.

a reply to: greencmp

Totally agree. But that means that you might have to contribute a little bit weather its time or money or advice or mentorship for the world to be that way are you willing to make small sacrifices to live in a better world?

a reply to: onequestion

Not sure I follow, is it not good enough that I mentor within my own geographic region?

originally posted by: onequestion

The Asian economies are exploding while the west dies, what lessons can be learned from whats happening in the global economy?

Ask China after America starts a war with them and forces them to forgive all Debts.

Only Half Joking, Germany had a really great economy before WWII... The Soviet Union before the Cold War... I wonder who's economy did amazing after those two events... hmmm...

a reply to: PsychoEmperor

I assume that was a joke.

Weimar Republic

I wonder ...

As these economies continue to grow their middle class, and the rising tide lifts more of their populations out of abject poverty, will an increase in US-made goods also coincide?

If we were to move manufacturing back state-side and export goods to India and China, could this be a good thing for the US economy? It seems like everyone wants Levi jeans and big, gas guzzling American-made SUVs overseas...

a reply to: MystikMushroom

I agree, if we dramatically decrease taxes, manufacturing has a real chance for repatriation.

a reply to: onequestion

While economists, investors and executives are still wondering how growth could have been so high during those quarters when other indicators suggested times were tough, the new official numbers mean that India outpaced China, taking the pole position as the fastest-growing major economy in the world.

Bold is added by me. China, US, Italy, darn near everyone is cooking their numbers. Why not India? New methods and you get the results you want.

a reply to: onequestion

India like China a decade or more ago isn't really growing in the sense of a mature economy; its growing from a low base economy that is highly underdeveloped. So yes, underdeveloped economies grow fast because they are at the low end of a curve but as you get to the high end you incur costs; environmental, social and debt saturation. India needs a modern infrastructure, a more advance supply chain, better political structures. They have a long way before they even get to China level of advancement and China has long way to meet the West level of technology. But they are committed that what frightens us in the West, competition of one is a pleasure. You only have to get marginally better but when you are in competition with the whole world, you have to get alot better and I am sad to say American doesn't have the chops for that.

originally posted by: cenpuppie
a reply to: onequestion

While economists, investors and executives are still wondering how growth could have been so high during those quarters when other indicators suggested times were tough, the new official numbers mean that India outpaced China, taking the pole position as the fastest-growing major economy in the world.

Bold is added by me. China, US, Italy, darn near everyone is cooking their numbers. Why not India? New methods and you get the results you want.

I am glad someone else noticed this as well. Corruption is pretty strong in India (like the U.S. and other nations). When I read the OP I was immediately reminded of research I was doing on Padmanabhaswamy Temple and the controversy over the audits done on the vaults and their holdings.

a reply to: MystikMushroom

I think slightly, but not oh so much. Their GDP is rising, but PPP is still very low. We're talking about countries with 3-4x our population, yet still less in GDP.

What is more likely to happen is African villages coming online with their industry to support China, and India, imo. The Chinese are heavily invested in that continent at that point, and seem to be doing much like our international organizations did for the west a half century ago... enslave through legal means.

I have hope that our bits of panic over the last decade has pushed our brighter minds to get into the sciences and help keep the US applying for many of the world's best patents. If we can leverage our scientific advances, we can support the rest of the service sector full of dumdums for some time yet.

The growth in China is kind of a false growth though. Their entire society is obsessed with wealth and making more money no matter what the cost. Sure on the surfce of things it looks like they are advancing in leaps and bounds, but back on the ground, the standard of living for millions is dropping, social programs are non-existent or barely functional and big brother is always watching everything you do.

China is growing rich at the expense of its population. Eventually it'll reach a point where the population (or the rest of the world) says enough is enough , then you'll see their economy shrink back down to its "real", sustainable size.