India's Moment of Truth - East Asia Forum

Like China, India emerged largely unscathed from the impact of global financial meltdown to grow at an impressive 6.7 per cent in 2008-09.

This was a performance that ranked second only to China’s: although lower than the 9 per cent growth achieved in the three years immediately before. In 2009-10, the growth rate was 7.2 per cent and it appears likely to be over 8 per cent in 2010-11.
As Govinda Rao argues in this week’s lead essay India’s impressive economic performance shows the strength of Indian economy. India escaped the global financial contagion as the Indian banking sector was not exposed to sub-prime lending and risky assets. But India’s continued good performance also demonstrates its domestic economic resilience, with growth fuelled by the high rates of domestic savings and investment.
Rajiv Kumar writes this week that last year was also one of highs and lows for India, symbolic of the terrible choices that India’s leaders now confront in defining the country’s destiny in the decades ahead.