http://www.minyanville.com/sectors/glob ... 4/id/55213
Without pretending to have any specialist knowledge about India, it is a good guess that reality is about to set in. Sometime pretty soon, Modi will stop walking on water, and markets will realize that India is India -- a country where one in four adults cannot read and gross domestic product per capita, at $4,000 per year, is less than one-half of China's and about one-third of Brazil's. The flourishing Indian diaspora we rub shoulders with in America unfortunately represents just a sliver of the home country.
India has neither the exportable natural resources of Brazil and Russia nor, for the most part, the globally competitive export industries of China and the East Asian tigers . As a result, its current account deficit exceeded 4% of GDP last year. The outgoing government ran a budget deficit equivalent to 5.7% of GDP, driving inflation that remains stuck at 8% annually, despite interest rate hikes by India's respected central banker, Raghuram Rajan, a former chief economist of the International Monetary Fund.