Friday, February 09, 2007

A Closer Look at India

Interesting article in IHT which raises some pointed questions on real foundation of India's economic strength. But the author does conclude he is optimistic about India in long term, but what he didn't do was to define long term.

A resurgence of Indian pride is understandable after decades when India was ignored by the Western media and viewed with disdain by fast-growing East Asia. Such a boost to national self- confidence must be of long-term benefit and create a dynamic of rising expectations.

But there are too many signs of an overconfidence that looks more and more like hubris. If suddenly deflated it could undercut the basis on which Indian optimism is built — that India can compete in a globalizing world and one day equal China in economic weight.

Enthusiasm about India's global role as a manufacturer, given its supply of labor and vast domestic market, is fine in theory, but it must be tempered by the reality of high tariffs and a huge manufacturing trade deficit. India is more dependent than ever on exports of services and raw materials, and on workers' remittances.


  1. How about this one

  2. Indian infiltration in service oriented U.S. market with made in India products is very conspicuous as compared to ten years ago. While Chinese/Korean goods and food items take a very prominent share of the U.S market, it is good to see that India is trying to get a piece of the pie. Generation X should see the benefit to Indian economy by way of increase in per capita income and economic growth.



  3. Karthik
    With the economy poised to grow at 9.2% there is concern about inflation.
    Chennai realestate is real hot..and most of the middle class is prized out already..

    Yes, India and GenX is going through unprecedented growth and prosperity.. now, If India can figure out a way to spread the wealth amongst the rural poor as well.. then India has got a real winner..


    hey this is a intersting article showing India emerging as a global econimic power..


    This is also an intersting article talkin about India as a emerging power globally.

  6. Karthik
    Sure, with billion+ people India has the potential..
    Now, what is 'emerging global power' mean? What is the context? Does it mean India will move 400+ million people out of poverty? Does it mean, India will wipe out illiteracy? Does it mean India will have a permanent UN Seat?
    What is the measurement here?

  7. not sure about this article... its always mixture report when it comes to economy India China debate.. but, I tried to compose about :
    is India's future success - Myth? ||
    India vs china - future edge ||
    2030: not india not china still us

    I strongly believe thinks can only move from good to better for india, with 500million people less 25yr and 800million people less 35yr old -- its our strength (and same is some weakness too)