Global economy depends on more than India in 2016
By Peter Thal Larsen and Robyn Mak (Reuters)- India will not rescue the global economy in 2016. The subcontinent’s expanding GDP is one of next year’s few economic bright spots. But Indian output is still too small. Any negative shocks from the sluggish United States and decelerating China will reverberate more widely.
India is finally emerging from China’s shadow in the global growth stakes. Helped by a controversial overhaul of its GDP statistics, the Indian economy probably expanded by 7.5 percent in 2015 and is set to swell by a further 7.8 percent in 2016. Contrast that with the People’s Republic, which is struggling to maintain the near-7 percent pace promised by its leaders.
The prospect of sustained rapid growth has drawn the attention of prominent central bankers. India’s ec...