India is ascendant as China begins its long economic decline. India will not be another China. India will continue to grow rapidly, and in a few years, along with the United States, it will be a second engine of growth for the global economy. Today, India’s GDP is about $4 trillion. Its economy is growing at a rate in excess of 7%. India has sustained that rate for the past two decades. Many economists project that India’s economy can grow at high rates for the foreseeable future.
China’s GDP, around $18 trillion, dwarfs that of India. The U.S. GDP approaches $30 trillion. But China’s economic growth is slowing, and its official statistics are suspect. China is on the verge of economic stagnation and perhaps deflation. In contrast, India has several advantages that make economists optimistic about its future.
