Certainly, India's economic growth on the world stage over the last decade has been nothing short of amazing. One cannot classify India as a "developing" nation in the manner it used to be categorized because it is emerging to be a world economic power. At the same time, its population of over a billion people makes it an undeniable consumer base for any and all corporations. A billion people's purchasing power cannot be ignored. Yet, there might be some steps that need to be addressed to safeguard its economic growth and to help facilitate the move from good to great in multiple realms. I think that there has to continue to be outreach into the rural areas. India's growth cannot be limited to the cities, as rural areas should and must benefit from the advances in technology, science and research in agriculture, and to ensure that all of India is progressing. The political structure in India must be more responsive to the needs of all citizens, ensuring that equality of opportunity is something embedded in the pursuit of economic and social progress for all. This would filter down to ensuring public education and access to it is fundamental. The banning of child labor is another part of this, as no nation can progress very far when its youth do not have education nor access to it. Finally, reconciling the lack of a coherent vision on how to deal with terrorism both within its borders and external to it is disastrous and must be addressed within the next five years, if not sooner.
There are many things that all countries can do that may help a lot, but here are a few that may help India in particular. However, before I list a few of them, let me just state that India has prospered greatly in the past decade.
1. I think India needs to develop is equities market a little more. I know that foreign investors are bit worried about the stability. For example, Jim Rogers stated a few months back that he would not invest in their stock market.
2. India can also develop its infrastructure more - building a bullet train from major city to major city might be helpful. Things like this would definitely help in the economy in the short and long run.
Since its independence in 1947 India has made big advancement towards becoming a prosperous and secure nation. The way it is currently progressive, it is already on its way to becoming one of the most prosperous nation in the world in terms of its economic size and capabilities. But complacency can be dangerous, and India cannot afford to take this for granted. It must continuously strive to improve further. The areas that offer maximum scope for improvements include:
- Improving the management of all its institutions including business, industrial, and other industrial establishments. While Indian Entrepreneur has shown great capacity for spotting and using good business opportunities they have lagged behind in innovation based developments. Also they have shown preference for reaping quick benefits and easy profits. In this process pursuit for excellence has suffered. With growing international competition Indian business and government leaders need to pay greater attention to pursuit of excellence.
- Related to management excellence is the need to improve reliability of quality of products. While over the years India has substantially improved the quality of its products, and now produces some products of quality comparable to the best in the world. However, pursuit of quality needs to be much more widespread than its current levels.
- The major bottleneck in development of the country is its infrastructure, and making improvements in infrastructure facilities like roads, transportation, and power will go a long way in giving further boost to economic development.
- Increasing the share of high technology industries i its total economic activities. So far the country has relied heavily on low manpower cost advantage for competitiveness in international arena. However this advantage is sure to shrink as level of prosperity in the country increases and along with that wage levels rise.
- In the field of information technology, particularly in software developmen, India need to develop the best capabilities in much wider sphere of technology, rather than just providing software development services to other companies. For example,
- Performance of industries is being harmed by narrow considerations of regionalism and casts. While the need to provide support support to under developed regions and under-privileged sections cannot be denied, any preferential treatment should pass the test of a proper cost benefit analysis. In particular, the practice of denying jobs to best suited candidates who can serve national interest best, to give jobs on the basis of caste in name of by equality, should be replaced by schemes to develop the capabilities of under privileged people. National wealth cannot be increased by just consuming it without contributing to its creation.
- Controlling corruption in politics and government will help in implementing all the good schemes and suggestion for development.