The India Way

APPENDIX A

Growth of the India Way

THE GROWTH RATE OF THE Indian economy has far outstripped that of the United States in recent years. The American GDP in 2008 stood at 1.64 times its size in 1990, while the Indian GDP had increased over that same eighteen-year period by a factor of 3.02 (see figure A-1). The disparity in growth rates is likely to increase even further. At the writing of this book, the U.S. economy was in the grip of the worst recession since the Great Depression, with negative GDP growth forecast for much of 2009. Though India’s growth was expected to slow as well, forecasts still anticipated Indian GDP expansion in 2009 of better than 5 percent.¹

While the Indian economy has been growing at a considerably higher rate than ...