Sunday, April 10, 2016

Fasten Your Seat Belts -India and China will be Main Drivers of Global Growth

IMF is about to revise its global projections of growth from 3.4% in 2016. Its going to be a downward revision. It is no rocket science to understand that this downward global growth projection will be due to  global slowdown in productivity, debt overhang, sluggish demand growth and you can go on and on.

At this point in time, everything that can be wrong is wrong with global economy. In this scenario the only beacon of hope for global growth is shining in India and China.

Conditions are more India leaning as the present Indian Govt is continuously making the right moves to drive growth. Mark Tully, ex-BBC correspondent in his book "No full stops in India" holds this very view.

This is what mark Tully in his book maintains : "The way changes are coming in Railways, Power sector, Defense Production and in governance and at the same time accompanied by the resentment of the old forces indicate that the process of change has begun albeit slowly but firmly and is going to be painful."

The only caveat is that Indian Govt should take immediate steps to quickly recover huge capital to the tune of Rs 4.4 trillion from willful defaulters of banks.