China’s Loss Can Be India’s Gain: Modi Must Press The Accelerator Now
The crash in the Chinese stockmarket – a 30 percent fall in as many days – is yet another opportunity for India. This is because the resultant global fall in commodity prices will benefit us. We need to remember a simple law: as a huge net importer of goods and exporter of services, when global commodity prices fall, our gains exceed our losses.
Let’s look at the loses first – and weigh the gains. As global stocks fall, so will Indian indices. But our market decline will be shallower than that of the others, for we are fundamentally a domestic demand-driven consumption economy. The psychological impact of a global stock decline will wear off. Details