India is the second fastest growing large economy and the fourth largest economy in purchasing power parity terms, But the economy’s strong fundamental are hampered by handicaps such as Infrastructural problem.
Going forward; India could take one of two paths –a business-as-usual scenario, in which it ends up as a middle income country with a per capita income of $ 5,500 and an economy of $ 8 Trillion economy(the world second largest) with $22,000 per capita income by 2039.
Citing the experience of other middle-income countries such as Argentina, Brazil and Mexico, which saw spurts of high growth followed by periods of low or even negligible growth, the book charts the road map for India to make the leap to affluence In 30 years.
India can go from its current state to that of developed affluent economy within 30 years- If it avoids the pitfall faced by middle income economies such as South Africa and follow the path of high growth countries such as South Korea –Mentioned in a leading book.
India needs to ramp up infrastructural expenditure from 7-8% likely during 11th plan (2007-12) to as much as 10-11% of GDP between 2009 and 2014.
The Government must address several challenges , including huge expansions in infrastructure and education.
Source: Mint(25/March/2010.)
