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Emerging Asia Economics Update

Emerging Asia Economics Update

Can high growth in India survive the state sector problems?

India got there just in time and yesterday’s opening ceremony for the Commonwealth Games proved to be a big success. Nevertheless, the poor preparation for the Games does highlight the growing governance problems in the public sector and the issues arising from India’s lopsided development more generally. Some believe that the country cannot sustain high GDP growth for long, let alone match or exceed the expansion pace in China. We outline some reasons to expect growth in India to stay rapid and probably faster than the GDP gain in China in coming years.

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