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Friday, September 4, 2009
Private Domestic consumption
It is often said that the India growth story is driven by its consuming class. Today's chart of the day shows that consumption is indeed the bedrock of the Indian economy, accounting for 57% of its GDP. Compare that with China, where private domestic consumption forms only 37% of its GDP. In fact, India fares well when compared to the major economies in the Asia Pacific region. The reason is not hard to find. Most of these economies are export led and are dependent on the constant demand of goods from the Western nations. In the case of China for example, exports contribute to 37% of the GDP as against 13% in the case of India. Little wonder that India has shown a great deal of resilience to global economic crises time and again.
Source: Business Line, Global Insight, McKinsey
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