There is a recent WorldBank report on India’s GDP growth, which is expected to slowdown in next two years. The reason indicated in this report is fiscal tightening, which is aimed at targeting the inflation. The GDP is expected to grow 8.4 percent, 7.5 Percent and 7.4 percent in current, next and year after that respectively.
But in my opinion, we have a different problem to solve to maintain the GDP growth and intern the economic growth at steady rate going forward. The basic infrastructure we have is to be improved in line with the growth we are expecting. In today’s scenario, the cities are just overcrowded with no infrastructure in place to accommodate new workforce, heavy traffic, no water and electricity, are the main problems.
We need to have a supporting engine, a society which would help this growth. We have a natural advantage of English speaking workforce and comparatively low wages. We got to make use of this advantage to keep the growth going.
One might wonder, what this infrastructure to do with growth? There is a direct link; lets assume there is a retail economy, which is expected to grow. Now, if we don’t have the basic infrastructure of roads, transportation of the goods becomes a problem and thus hinders the growth rate.
We can very well keep this report aside saying this is just a speculation, but in my opinion, there is a lesson in this, there is a message we need to grasp and appreciate. We are not just ready yet, we are just starting and we need to get ourselves ready for the next level growth. And to make the country more investment friendly, we need to have a sound infrastructure in place.
Report at http://www.businessstandard.com/common/storypage.php?autono=287080&leftnm=3&subLeft=0&chkFlg=
Sunday, June 10, 2007
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