On 11 May, I had written a blog post titled `Decoupling?' where I pointed out that China's exports growth to the US had dropped to 0% on a year-on-year basis. Today, the New York Times has an article by Keith Bradsher about the slowing Chinese economy. The CNY appreciation seems to have stalled as the growth lobby has become more influential than the PBOC. (Yes, China differs from India in this respect also). The best coverage of the action is at Michael Pettis' blog.
India is more internationalised than ever before. The global business cycle downturn matters more in thinking about the outlook for the Indian business cycle when compared with the way things were in previous decades. On this subject, you might like to see my article New issues in Indian Macro Policy.