India Growth Miracle Faces Threat
Country's leadership views India's destiny to great world power as inevitable. As a result, complacency has returned at top policy levels. Top 10 challenges for IndiaRead full article The single most important reason why India receives as much attention worldwide as it does today is its perceived economic potential. At $1.25 trillion in GDP, the country currently accounts for only 2.2% of the world GDP. It ranks a low 12th in economic size despite a population of 1.2 billion and comes behind all remaining three BRIC (Brazil, Russia, India and China) countries. Yet India cannot be ignored because if it fulfils its promise of near-double-digit growth over the next two decades, it would become the third or fourth largest economy in the world. But nothing is ever carved in stone in the world of economics. In the 1950s, India had been seen as a rising star while South Korea was viewed as a basket case. But dramatically different policy choices by the two countries led to exactly the opposite outcome by 1980. Fortunes began to turn for the better for India only…
Continue reading...