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The Indian Miracle

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Economic growth in India is of the sort to make analysts rub their eyes and begin to worry about “overheating:”

Manufacturing, which makes up nearly a quarter of GDP, raised eyebrows when it clocked 11.3 percent growth in April-June.

The pace slowed to 9.2 percent in the latest quarter and Morgan Stanley said industrial output would continue to lose momentum as rising interest rates, slowing global demand for exports and costly oil bite into the sector.

The bank expected industrial growth to slow to 6.6 percent in 2006/07 from 7.6 percent this year, while services would fall to 8 percent from 9.4 percent.

Whatever they are drinking, send some of it to Africa and South and Central America.

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