As
per PMI (Purchasing Managers Index)data India has scored 53.27 for April up
from 49.46 in Mar 09. A score above 50 represents expansion and less than50
contraction. India fared even better than china which scored 50.05 and
44.83 for the above months respectively. India and China are the only two major
developing countries posting scores above 50. Other major developed economies
like US, Japan and European economies are way behind.
Imagine
if Indian Govt were to announce a stimulus package of 585 billion $ as
announced by Chinese Govt.(which is 1/7th of GDP) What India could
have achieved????? India’s stimulus package was not even 10 billion $(which is
not even 1/100th of GDP) India is surely ahead of others in
recovery. So I think we are passing this Global Economic Crisis with
milder effect than others. Two main reasons for this are lesser export to GDP
ratio which is less than 20% for India compared to more than 40% for China and
domestic consumption Led Economic growth.
