India, China to lead the way

India, China to lead the way
The Economic Times, November 20, 2009, Page 17

China and India are poised to accelerate due to strong stimulus measures, the OECD projected Thursday. “Vigorous growth has resumed in China” thanks to sizeable monetary and fiscal stimulus, it said. The Paris-based group hiked its growth forecast for China to 9.3% in 2009 and 10.2% in 2010. In March, it projected China's growth at 6-7% in 2009. For India, the OECD boosted its growth forecast to 6.1% in 2009 and 7.3% in 2010, rising to 7.6% the following year. The OECD, in March, projected 4.3% expansion for India in 2009. India's recovery appeared to be only “modestly hampered” by the driest monsoon in nearly four decades and economic data suggested the growth “momentum is strengthening,” the OECD said. But a resurgence of inflationary pressures pose a “key challenge” to Indian policymakers in deciding when to withdraw stimulus in order to tackle the large public deficit, it said. — AFP