If the rural power is the major reason for growth then it's not a stable growth, because it will all depend on Monsoon.
You've misread: the article delves into rural consumption as the primary driver behind economic growth
in the last financial year owing to the global financial downturn. In the end, we know that the real engines of growth lie in the cities- which is why we are building new satellite and Tier-II cities galore:
Cities Mayors: New cities for India
IT Cities in India - India To Build 43 New IT Cities In 10 Years
List of cities in India - Wikipedia, the free encyclopedia
The Luxuries of the city??? I never seen any data to support that India is doing better than China, kindly provide some links.
World's luxury brands at India's doorsteps- Fashion / Cosmetics / Jewellery-Cons. Products-News By Industry-News-The Economic Times
"According to the McKinsey Global Institute, consumers earning more than Rs 1,000,000 a year will total 24 million by 2025, which will be larger than China's comparable segment. "
"India has been identified as an important source of this growth and is likely to grow at an annual rate of 28% in the next three years."
Further:
Luxury Market In India set for Expansion and How?
China's most stellar years of luxuries growth (2004-09) have been around or about the 20% range.
hktdc.com - China luxury market highlighted atop financial crisis
In India, it is a cultural thing- we are attracted to everything that glitters like gold. While in China growth in China is far more equitable, India's growth rides on the back of a very wealthy and very influential 'middle class' of some 400 million people. These are the lot that are extremely sentient, brand conscious and ostentatious to the like.
The increase of Chinese domestic consumption keeps outperforming that of the whole Chinese economy in the past several years. If I remeber it right, the rate is average 15% on year to year basis.
Chinese 'consumption growth' figures have been far less than the '15% annual increase' figures falsely claimed by pseudo-economists such as yourself. The inflated figure arises because of how retail sales are calculated to include government purchases and shipments to retailers before any sales to actual consumers (could these healthy figures include, therefore, lots of unsold washing machines, fridges etc? China's government has introduced a huge subsidy scheme aimed at encouraging rural residents to buy more white goods, but is unsure of its success).
China's real consumption figures have infact been estimated to be somewhere in the 8-9% growth range.
See this blog by renowned financial economist
Michael Pettis for an explanation why:
China?s retail sales growth figures are not consumption growth figures
Here also is an interesting take on China's power growth consumption and how it has not been reflected in official statistics for the same:
Again, China's Electric Consumption Does Not Support Official Growth Statistics-ChinaStakes.com
Furthermore, this is what the Carnegie Endowment for International Peace has to say about future Chinese consumption growth:
Brace for a Decade of Lower Chinese Growth - Carnegie Endowment for International Peace
You might want to take this Fund seriously, since the Carnegie Endowment, also the publisher of the world
'Foreign Policy' magazine and the
International Economics Bulletin, is an International Endowment with headquarters in Moscow, Beijing, Beirut, Brussels, and Washington, D.C..
I've been unable to find the most recent per-capita consumption growth figures for India for 2008-09, but the Central Statistical Organization [India's central stat agency] estimates that per capita consumption rose by over 22 per cent in 2007-08 over the previous three years. That is an (approximate) growth of 7% annually- not too far from China's 8-9% range. Furthermore, the
base year for which these figures are calculated based on average prices for 1990-2000 and not on a single year's prices, so that the effect of the reflected growth rates from the exponentially increased earnings due merely to prices of manufactured goods and farm commodities over the next decade - particularly since the 2005 period, when the economy grew between the 9-10% growth range - are not represented in the figures.
Future trends:
Indian consumer spending to quadruple by 2025
For example, China is the biggest auto market in the world now, and the trend will continue for years to come.
No it won't.
India fastest growing auto market
Car industry in India ? fastest growing sector in the world
Indias Auto Car Market: A Phenomenal Growth Story - Free-Press-Release.com
Industry-specific:
India is fastest growing source of cars in the UK as Chinese car sales fail to grow | AM-online news
Goldman Sachs also seems to be intent on predicting that "India will have the largest number of cars by 2050".