In the last several years, India has emerged as a global economic power. It has become one of the worlds fastest growing economies, the worlds leading outsourcing destination and a favourite of international investors. Indian corporations are emerging as a 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 restictions have been steadily eased and broad structural reforms have increased the flexibility and competitiveness of the economy. Considerable challenges still exist though, as India seeks to sustain rapid growth and extend benefits to all its citizens. Good jobs need to be created for the 100 million labour entrants over the next decade. Indias infrastructure must be dramatically enhanced to cope with its booming economy. Large fiscal deficits and debt must be brought under control. India must continue to open itself to the world, to reap the benefits of globalization.
The 11 studies in this book examine in detail what lies behind Indias recent economic rise and considers the steps needed to build on this success over the medium term.