A recent research release from Nomura covering growth in India points out that India has developed a far greater GDP correlation with China than with the U.S. or E.U.
During the majority of the last decade, India tracked China and the U.S. and E.U. GDP fairly equally, but in recent years the correlations have diverged. As the GDP correlation with the U.S. and E.U. declined, the GDP correlation with China has risen sharply.
India’s exports have strongly aligned with China’s industrial production. Nomura adds that the growth slowdown China is projected to see in the second half of 2013 will be a drag on India’s production.