On Monday we learned that Indian industrial production had accelerated to 9.5% in April from a year earlierHowever, I have changed my mind about the comparisons with China.
Today it is reported that China's industrial output growth accelerated to 17.9% in May.
Output in China has expanded at double the pace of India and South Korea in the past year, helping drive economic growth of more than 10 percent.Just what are they on? We need some of that, but I suspect a lot of it is unsustainable investment in industrial capacity. This is a give-away:
Premier Wen Jiabao is trying to rein in parts of an economy that grew 10.3 percent in the first quarter, as an investment boom left manufacturers saddled with excess capacity. His task is being made more difficult as banks extend more loans for new investment projects..