India bucks contraction trend – Home – livemint.com
Incidentally, the global manufacturing survey says, “With the exception of India, which again bucked the global trend, all of the national manufacturing surveys posted declines in output and new orders.” With the survey for the Chinese manufacturing sector also showing a contraction, all the big global engines of growth are now contracting.
India’s domestic demand seems to have enabled it to continue to expand, albeit at a slower pace. And although India does not figure in the global services PMI, it’s likely that it will also show a similar trend of slower expansion.
The export model
Bretton Woods created a global model of economic growth based on exports to dollar exports which were paid for by making the printing presses in he American mints work overtime. Japan, Korea, the ASEAN and now China all followed this model.
THE Middle East Sheiks grew rich by pumping increasing amounts of oil- and extracting dollars at higher rates from poor countries.
The Indian model
The exception was India. The Indian model was a more painful model – of building indigenous capacity, controlling dollar influence on domestic economy and a chorus of nay sayers. But, it is still early for self congratulation.
Self esteem is a difficult burden to carry.