India Economic Outlook: This Could Spell Trouble in 2016

[AquaGangster]

In the midst of a weak global economy and a China stock market crash, India’s economic growth rate has eclipsed all others. The Indian economic outlook for 2016 is bright relative to the global economy, with businesses expressing enormous faith in the leadership of Prime Minister Narendra Modi.Right now, India’s economic outlook for 2016 is ideal. It eclipsed China as the fastest-growing economy in the world, pushing forward at a perilous time in the Middle Kingdom. A gargantuan stock market crash in June has pushed China to the brink of economic collapse, sparking broader fears about global economic growth.

 

[Toddsterpatriot]

Why could this spell trouble?

 

[Moonglow]

The Yen ain't what it used to be..

 

[william the wie]

Yes. India will spend the next twenty years adding infrastructure then it will hit the end of catch up and slow way down. We've seen this film before in Japan, the Asian Tigers, China and now India.

 

[MarathonMike]

I don't get it. India is loaded with highly educated, relatively low paid technical and medical people. If anything 2016 and the next few years should be boom times for India as foreign investment pours in either through outsourcing or build out.

 

[TheOldSchool]

India could be one of the U.S.'s most important allies. It's by far the sanest voice in the bubble of crazy that includes the Middle East. Perhaps the only sane voice.

 

[william the wie]

I don't get it. India is loaded with highly educated, relatively low paid technical and medical people. If anything 2016 and the next few years should be boom times for India as foreign investment pours in either through outsourcing or build out.

You have a lot of company in your opinion especially in India. Here are the problem areas:

A corrupt bureaucracy.

Anti-corruption legislation in the developed world.

Anti-foreign investment laws.

Lack of infrastructure.

legal impediments to creating infrastructure.

Widespread Maoist uprising.

Inept suppression of same.

 

[HenryBHough]

India has done a masterful job of educating scientific and engineering oriented young people.

But they're being exported.

India has one of the most complex sets of rules, regulations and licensing on Earth. Much of which is corrupt, rent-seeking. That's what is holding the country back and causing the flight (largely to America) of the best and brightest. Also Indian businesses are becoming more and more aware of opportunities elsewhere and are acquiring failing firms all over the place and turning them around. If anyone could rationalize the whole package of rules and make India business-friendly it could quickly outperform pretty much any other economy anywhere.

But that's bloody unlikely....