India’s economic growth is displaying Chinese characteristics

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But there is a fly in the ointment. The structure of the Indian economy is also turning Chinese, or at least exhibiting characteristics associated with the People’s Republic. The world’s second-largest economy has relied too much on investment, and suppressed consumption. Continuing with the status quo may worsen its debt overhang. But shifting gears won’t be easy either. India has always been different. While China’s private final consumption expenditure has struggled to get past 40 per cent of output in the past two decades, Indian households’ outlay on goods and services has routinely accounted for 55 per cent to 60...