Last Tuesday, in my MINT column, I wrote that there was no room for smugness in India about the situation in China. Specifically, I wrote this:
India ticks many of the boxes on economic distress that China ticks. India’s gross domestic product growth statistics are suspect. Indian banks have non-performing loans on their books which they are yet to recognize. Indian companies have not adequately deleveraged. Many sectors suffer from excess capacity. Like China, the Indian government too has scored policy self-goals in the last several months. The only difference is that China has shown a sense of urgency but has been panicky. India has been complacent. [Link]
Today, FT has a piece and they write pretty much the same thing. I have to agree. Rajeev Malik’s remarks are accurate. Signs are not encouraging. India always wants to punch far above its weight but it is not prepared to or cannot work for it. Can big dreams go together with pettiness?