Summary |
In the last several years, India has emerged as a global economic power. It has become one of the world’s fastest growing economies, the world’s leading outstanding destination, and a favorite of international investors. And Indian corporates are emerging as key global players in their own right. This rapid development has gone hand-in-hand with a gradual, but unmistakable, opening of its economy. Tariff rates have come down significantly, capital account restrictions have been steadily eased, and broad structural reforms have increased the flexibility and competitiveness of the economy.
Even the India’s impressive recent achievements, it continues to face considerable challenges as it seeks to sustain rapid growth and extend its benefits to all its citizens. Good jobs need to be created for the 100 million labor force entrants expected over the next decade. India’s infrastructure must be dramatically enhanced to cope with its booming economy. Large fiscal deficits and debt must be brought under control. And India must continue to open itself to the world, to fully reap the potential benefits of globalization.
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