India’s growth almost as fast as China’s

India continues to experience amazing growth. So does China. What times we live in, via WSJ:

India’s economy continued on its red-hot streak, despite major bottlenecks in the nation’s rickety infrastructure, as a boom in manufacturing and services fueled economic growth of 9.4% in the fiscal year ended March 31. The blistering pace was up slightly from the previous year’s 9%, according to India’s Central Statistical Organization. In the final quarter, India’s gross domestic product grew at an annualized rate of 9.1%…

“Indian information-technology firms face three challenges: the exchange rate, a general slowdown in the U.S. and the housing/mortgage-sector meltdown in the U.S.,” said Sujan Hajra of Mumbai-based Anand Rathi Securities. India’s technology companies cater mostly to overseas clients, such as U.S. financial institutions, and earn a large portion of their revenue in dollars. India’s economic growth — greater than 8% for the past four years — is expected to continue at rates of at least 8%.

If China’s and India’s growth runs are sustainable over the next five years or so, the world economy may have dodged a bullet of the 1929 sort. If it turns out otherwise, watch out.

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