Written by: Stephen George
Since the start of 2016 global financial markets have weakened, shaken by concerns over the slowing growth of the Chinese economy, persistently low oil prices and capital flight caused by currencies devaluing against a strong US dollar. Natural resource economies have slumped as Chinese demand for metals and fuels is slowing. Many oil exporting countries, including most OPEC countries, have slipped into recession. Rising interest rates in the US have pulled capital out of developing markets as investors and speculators seek a safer return on capital in US markets. This also places pressure on countries with dollar-denominated debt. Against this backdrop of growing concern over the soundness of the global economy, India stands out as a bright spot for global growth. Alone among the so-called BRIC countries, India is experiencing a robust upturn in economic activity.