Looks like we suddenly have something more serious to worry than catching up with China , on its fast paced growth. The harsh reality seems to be that we need to grapple the global recession.
After 4 years of consistent growth of above 9% on our GDP, and Chidambaram's trust on our strong economic fundamentals, many of us reluctant to agree that we may have to fall along with the rest of the world, if the US hits (or has it already hit?) the bad 'R' word.
Was reading an article by Swaminathan Ankleshwar Aiyyar of the Swaminomics fame. (Read the full article here : End of the 9% Growth dream) and would like to present at this point the growth figures of the last four years of some countries probably unheard of by the normal Indian.
Country GDP Growth figure Year
Azerbaijan : 31% 2006
Azerbaijan: 27% 2007
Turkmenistan: 18% 2006
Sudan 12% 2006
Liberia 9% 2007
These growths only go on to accede to the debate that the growth in India was purely a result of surfing on the global tide of growth. Not necessarily due to Indian resourcefulness. The sustained growth of 9% might have pushed us into an illusion with a foul after taste.
The US over spending has undoubtedly created a huge demand for products and services, across the globe and when the demand got stretched beyond limit, anybody who could produce a good or cater a service got the chance to supply the same and make a lot of Forex. The growth has been directly or indirectly connected to the demand from the US. Propelled by the dream of sustained growth the markets were furthur opened. But is the promise of free global markets failing to work?
How delinked we can get to such global catastrophes is dependent on how fast can our domestic consumption grow. We need to aim at a high growth of domestic consumption and not merely an illusory growth due to external demand!