President Obama is visiting India, and the reflected spotlight shown on his travels is helping to illuminate trade ties between India and the US. Also reflected are the differences in two giant economies of Asia - India and China.
For much of this decade, China's economic growth has been the overwhelming story for investors, journalists, and political leaders. Though nearly as large in population, India has been a distant shadow to such attention. Yet unlike China's Communist-controlled command economy, India is a democracy, and that is at the heart of an emerging "Mumbai Consensus."
The theory is that instead of a central government orchestrating the economy as in China, India's economic growth is demand-driven. Ordinary Indian consumers voting every day with their Rupees are driving their economy forward in a way that may be more sustainable than China's top-down model. Though China's model remains an unquestionable world economic powerhouse, India's slower growth may yet prove to be the long-term better bet.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).