India’s economic growth may surpass china’s in 10 years
MUMBAI: India's economy may expand more than China's in the next 10 years if the world's second-most populous nation lifts curbs on foreign investment in retail and boosts spending on roads and bridges, Nouriel Roubini said.
"I'm very optimistic about India's future growth" because the economy is driven by domestic demand while China relies more on exports, the New York University professor and chairman of Roubini Global Economics who predicted the global financial crisis said in New Delhi. "The challenge for India will be to sustain 9 percent growth and at the same time keep inflation under control."
Roubini joins Morgan Stanley in predicting India will grow faster than China. Prime Minister Manmohan Singh's government plans to double spending on roads, ports and power plants to $1 trillion in the five years to 2017 to improve the quality of India's infrastructure, which is ranked below Sri Lanka and war-ravaged Ivory Coast.
The South Asian country's gross domestic product climbed 8.9 percent for a second straight quarter in July to September, the government said this week.
Indian laws, aimed at protecting small store owners, limit overseas investment to single-brand retail or wholesale operations.
Wal-Mart Stores Inc., the world's largest retailer, and rivals including Carrefour SA and Tesco Plc are pushing the government to allow foreign investment after the trade ministry invited views from the industry on removing the restriction. Wal-Mart Chief Executive Officer Michael Duke said in October he is "optimistic" that non-Indian companies will be allowed to invest in the country. -PB News