Can The Indian Tortoise Overtake The Chinese Hare?
In May 2013, India was counted as one of the ‘Fragile 5’ nations. Today, just 20 months later we are numbered within the best emerging economies. In fact, Prof. Nouriel Roubini of Stern School of Business (NYU) who foretold the global financial crisis, now predicts that the Indian tortoise will overtake the Chinese hare over the next decade. The reasons for this impressively quick turnaround can be attributed to a smart government clearly intent on moving away from 'tax terrorism' and proactive about business reforms, as well as the positive impact of reduction in global oil prices, which can help rein in inflation and our looming fiscal deficit
The country might overtake China over the longer term, but this can only happen in an India where factors that currently inhibit accelerated growth are addressed and policy decision- makers stop shooting self-goals.
India is definitely not out of the woods yet. Indian corporates are still very debt-laden, and not overly eager to make new investments until their balance sheets look better. Interest costs are high. A sizeable number of large projects are either awaiting government approvals or not producing cash flows - and until that happens, new investments will certainly not kick-start.
For India’s economic and demographic dividend to pay off optimally, the country's youth must enter the job market with employment-ready skills. The government needs to usher in more pro-growth reforms – especially on the labour, energy and taxation fronts, and that too at a faster pace. Also, partisan and right-wing politics must stop hijacking the growth agenda.
In its quest to unearth corruption, the Indian judiciary is actually compromising India’s prospects for growth. Even positive actions are now placed under the microscope. Such a strangle-held environment cannot promote growth, because the government cannot follow through on a reforms-driven vision. A back-ward-looking witch-hunt can never advance forward-looking growth.
As an Indian, I am very much invested in my country’s future – and I am certain that, with just a few decisive tweaks, we will definitely live up to Prof. Roubini’s prediction.
Business Development Manager at Delco International P. Ltd.
10 年Good.. it is not the matter of surpassing China but how we will achieve the self sufficiency in the shortest period is the foremost challenge. The biggest hurdle is the vote-bank politics and immature population of our vast democracy , they can be easily swayed and misguided by false propaganda with the collective efforts of vested interest politicians!! It is very tough to mould the minds of the people who enjoyed caste -reservations and enormous subsidies without any hard work for the last 67 years! One man is not enough for the complete transformation of India, Social workers, Economists, Teachers and all well wishers of India should join hands with Mr. Modi then only we can expect some prosperity of our Nation in the immediate future....
Precision Machined components for the Aerospace | Defense | Medical | Automobile/EV | Firearm industries
10 年It will happen only if (cautious) proper infrastructure is put in place, and projects are funded and executed with highest level of integrity. Unlike West Bengal where the cost of a lamp retails at $15 and the exchequer is charged $ 150.
Director at GrandMett Hospitality Services Pvt.Ltd
10 年India INC is drawn in the Web of Political and illegal financial transfers within the country.Our government must initiate policies and rules to Change and shift to Single window,Transparent Accounting Standards,and outdated rules and regulations that are crippling the Industrial and Agricultural growth of our Country.