View: India’s growth has Chinese characteristics

India, once touting its exceptionalism, is facing economic challenges resembling China’s model. With private consumption crawling at 4.4%, sluggishness is evident, and unsecured personal loans surge. Prime Minister Modi’s focus on capital stock is reminiscent of China’s investment-heavy approach. However, doubts persist about trickle-down effects benefiting the surplus labor. As India’s GDP lags pre-pandemic levels, the job market narrows, impacting incomes for a significant portion of the population. The top 20% may thrive, but broad-based consumption growth is essential for sustained economic success.