E Roubini On India Growth And Status Of Asia Fusion

India will remain one of the fastest-growing major economies in the world this year given strong household spending and corporate fundamentals

An increasing export effort, coupled with strong consumer spending, should make India's growth strong, but as we see there are disagreements with that view. Roubini certainly is talking in the range of 6 to 7 percent. And with 4 percent inflation, that growth number will need to improve.

It was reported that:

A group of over 100 economists had gone public with their reservations on the GDP and other key dataprints last month in the light of the frequent revisions in the way the numbers are computed. 

Roubini had said to Rediff that stagflation was not yet an issue, though it could become a concern. But foreign investment appears to be strong, so India has a foundation of solid growth as long as that investment continues.

Asia Fusion

I had previously reported here and here that India and Asia in general had attempted a reconciliation with the world's developed economies taking notice. Of course, the serious spat with Pakistan set that back. If that can be mitigated, the entire region would benefit. 

The nations are far from forming an economic union, as has been contemplated, but the Belt and Road Initiative could offer the fusion that would make the area stronger economically. India is torn between supporting the Belt and Road and increasing its ties to the west. 

Certainly, the question is, would China measure up to the leadership role needed to bring a better standard of living to the area or not? Quartz India tells of this G-20 example of the tension India feels: 

Prime minister Modi was first photographed posing with president Donald Trump and prime minister Shinzo Abe during a trilateral meeting most openly concerned with China’s economic and military rise. Hours later, however, Modi had joined president Vladimir Putin and president Xi in a second trilateral. This one could be summarily described as being aimed at the global order led by the United States and its allies. The second trilateral meeting was defined as a counterpoise to the first, and Modi managed to attend both. Shaking hands and smiling with Trump first and with Xi later.
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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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