India to Outpace China by 2013
By siliconindia   |   Tuesday, 25 October 2011, 23:43 IST   |    11 Comments
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"India's consumption-led economy continues to make the country a highly attractive investment destination in the short to medium term. Its domestic demand-driven growth model has helped the country weather the volatility in the global markets, providing significant growth opportunities to businesses," said Farokh Balsara, Partner & India Markets Leader, Ernst & Young India. This year the RGMs are anticipated to expand collectively at 6.2 percent, almost four times more than the growth expected in Euro zone. While the overall perspective for the RGMs is positive, these economies also have to confront a number of challenges, including inflationary pressures arising from overheating, impact of capital inflows and infrastructure issues, to support long-term growth. In case of a messed up Eurozone debt crisis that leads to a prolonged recession in the Eurozone and a freezing of growth in U.S. in 2012-13, the GDP growth would dip to 3.2 percent across Rapid Growth Markets in 2013, much lower than the 6.2 percent currently expected.