China’s cooling economy has caused many investors to worry, but among those concerns India has remained strong. At the end of august, GDP for the country rose by 7 percent for the quarter, putting its growth on the same level as China. It is also fairing better than many troubled areas in the country, giving investors a reason to be happy.
Of course, GDP statistics are known to be inherently optimistic, and sometimes can overstate the strength of an economy, but India’s Growing Economy shows sings that is remaining strong, or at least hurting far less, than other similar economies.
That’s not to say that India’s economic outlook is without challenges. The country’s public-facing banks are struggling with bad debts accumulated during the investment boom of the 2008-2012 years. Credit growth is weak, and many of its people still existing the day-to-day work of farming life, rather than finding work that pays better in offices and factories.
Still, the economy is strong enough that some have said it may overtake China in importance in the global economy. A similarly sized population combined with a younger average age are good factors to help promote this type of growth. Most investors, however, feel that taking over China’s “mantle” may be too lofty of a goal for India with the current challenges, but with a little additional economic muscle, it could eventually reach that point.
Even though India is facing challenges, it appears to be attacking those challenges successfully, and growth is expected to continue through the end of the year. Should the economy be able to continue this growth, it may rise to more of a world leader in the coming years.