The Indian economy is coming back. After several years of disappointing performance, the authorities are shifting to policies aimed at boosting the annual growth rate closer to the roughly 9% level that India achieved from 2004 to 2008. That won’t be easy. India has many handicaps and lacks many of the things that are needed to sustain rapid growth.
High inflation, federal budget deficits, a record trade imbalance and sluggish growth have plagued the Indian economy over the last year, but a recovery may soon be in the offing.
In a view that stands apart from the gloomy headlines and skepticism about India’s economic prospects, Credit Suisse Head of Southeast Asia and India Economics Robert Prior-Wandesforde said last week that the economy’s downward trajectory may have finally hit bottom.
NEW YORK TIMES -- "As the founder of a successful offshore oil-rig engineering company, Mr. Ashok Khade is part of a tiny but growing class of millionaires from the Dalit population, the 200 million so-called untouchables who occupy the very lowest rung in Hinduism’s social hierarchy.
Both India and China are in the middle of their worst economic slowdowns in many years. If IMF projections for 2012 prove accurate, China’s GDP will advance at the slowest pace since 1999, and India’s at the slowest pace since 2002. There is a lot to learn from these downturns. One is that economies, no matter how promising, can’t grow at fantastically high rates indefinitely, with GDP ascending in neat, upward straight lines. We also learn that “decoupling” is still not a reality (especially for China).
Mr. Keshub Mahindra, Mr. Deepak Parekh, Mr. Narayanan Vaghul, distinguished ladies and gentlemen: It is an honor to speak on the occasion of the birth centenary of Mr. Hasmukh Thakordas Parekh, a giant of modern Indian finance. I did not know Mr. H.T. Parekh personally, but his achievements speak for themselves. He played a key role in the development of ICICI, India’s largest private sector bank.
It always strikes me that the United States could learn a lot from how India responds to terrorist attacks. From an outsider point of view, India seems to have a few clear priorities. They want robust economic growth. They want to maintain a clear military edge over Pakistan. They want to be able to deter a Chinese attack. And they want to be respected on the world stage as a great power. They understand that these are difficult but attainable goals.