One of the biggest differences which I have found between the US and India is way money and credit is handled. In the US as you may already know there is an extremely large reliance on credit to finance almost anything. Banks are private and “regulated” by the government. In India things are much different.
Banks are not privately owned and are strictly regulated. Also Indians buy things from savings and credit is not widely used and even hard to get access to for an average person. These policies have done two things. First it has allowed India to grow at a sustainable rate. While housing prices in Delhi have become very high, the market is stable because of the lack of credit. The second effect that this regulation does is made progress very slow. The infrastructure here as many Indians will agree is very poor and people who are less fortunate have to fight and even steeper uphill battle.
This leaves the question of which policies are correct. The feeling I got when talking to Indians about this was that there needs to be more credit to foster progress while at the same time there needs to be a system built for sustainable growth. Only time will tell us where the Indian and the US economies will go.
