Indian economy more stable than China: UBS chief.....

In fact it is true, our economy is stable despite inflation and price increases.I think this is due to the factor that our economy is mixed type enabling to sustain. In case we have capital economy, we will have to suffer. Our investments have been spreaded and diversified in different forms which gives the cushion to absorb/sustain.

Thanks for the referral Ms.Namrata Pathak.

Hello Namrata, Yes. UBS Chief is correct about our economy is stable than china. of course the growth will happen in the coming years. Our problem is population and the Government decession. If we control population and with the positive decession from the government, we can maintain huge growth. Hope for the best.

K Rajagopalan. 

The UBS chief may be right. We are in right direction. But the outcome of price rise and infliation has its own fall outs like the labour in long run will become costly hence the produce will not be cost effective. Today our exports are growing since the labour is cheap once that is removed we will see a dip in exports and in no way imports can be reduced.

At the same time our growth is a real growth but to compare with Chaina I feel it is a little bit difficult since Chain has 3 trillion dollers as forign reserves and that can be used as a stimulas for a long long time to come on top of that if they master english language we will lag much much behind.

I would say Yes.

Stability is a relative term ; a drunken man who is lying by the roadside is very stable , since he is unlikely to move for quite a few hours ; an officegoer who is running to catch a bus is not stable , since he cannot maintain his speed for too long , either he catches the bus within a few seconds or he misses the bus , and has to wait for the next one.

India has been slumbering for so long that any kind of movement is unnoticed ; China's rate of growth has been incredible ; all its achievement has happened within the last 20 - 25 years. Given this kind of rapid growth , it is inevitable that it will slow down , which is what is happening now. So if you take the next 20 years , India's growth will probably be more than China's. To that extent , India is more stable , as an investment opportunity.

The recent uproar over working conditions in Foxconn is a wake up call ; if more and more workers rebel , then China's advantage as a cheap outsourcing country will evaporate.

Lastly , there is my inherent patrotism ! I very much wish that India outdoes China in the long term.