China in need of more consumption; India needs more investment
Nov 8th, 2011 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
In the immediate aftermath of the 2008-09 financial crisis, China and India adopted an easy approach of aggressively boosting domestic demand largely via credit and fiscal expansion. China's policy measures were biased towards boosting investment, which lifted investment/GDP from 41.7% of GDP in 2007 to 48.6% in 2010. India's measures were biased towards boosting consumption and did not focus on generating new productive capacity.