India"s Development and GDP Growth Ready for Greater Momentum
For the past decade or so there has been a lot of media interest in China's rise as an economic powerhouse.
And, lately, the international media has begun to speak in one breath of China-India.
This has led to a lot of speculation, comparisons and debate among all those who are interested academically or for other reasons.
China has long been investing in its infrastructure and the results are there to see - spanking new highways, airports and a lot more.
Much of the investment has come from abroad and has helped China race ahead in its bid to develop fast.
India awakened much later than China to the need to reform and grow, riven as it is (was) by its polity and political leaders for whom the mantra of self-survival and power is all-important.
In their bid to protect their vote-banks they often neglected to do what they needed to lift the country out of its morass.
Policies seen to favour the rich in any way were soundly rejected in favour of the apparent people-friendly ones.
All this slowed the pace of needed reforms.
However, slowly and with measured footsteps of one unsure of the ground one is treading on, India's policy-makers began to move in the direction of growth, recognizing the need to overhaul their decades-old ideas and outmoded beliefs.
Each little step met with success as taxes were rationalized and red-tape reduced.
This emboldened the South Block czars and the political honchos to come out more openly in favour of development-related policies.
Slowly, the move gathered momentum and a consensus began to build up among the political parties that they needed to shake out of their Nehruvian and socialist-inspired slumber.
Recent growth in India, with GDP figures galloping ahead and the economy making remarkable breakthroughs has caused all the world to sit up and take notice.
Today, despite poverty and a host of other related problems, India's economy is showing signs of health and vigour.
What was remarkable about India's growth was that it was powered by internal resources and not by handouts from the charitable or profit-motivated rich investors.
Now, foreign investment in India is beginning to show a real presence, although still far less than in China.
Once this investment is ploughed into infrastructure and the returns begin to show, India will attract even more foreign investment.
With a little more planning, investment and direction, India's growth can exceed a mind-boggling 15% p.
a.
and that within 5 years.
This may sound far-fetched now but when the multiplier effect of spending on infrastructure coupled with greater investment kicks in these figures will bear out.
It's true that India still lags far behind China economically.
India started its reforms a good couple of decades later than China...
But the issue is not whether it will catch China or not...
The issue is whether India is able to lift millions of its citizens out of poverty and give them a decent life.
Life goes in cycles...
so does the fate of countries...
witness how India was perhaps the wealthiest country some centuries ago and the search for new European trade routes to India led to the discovery of America.
Consider for example the enormous amount of wealth that looted from India by all kinds of invaders.
Estimates suggest Great Britain alone plundered wealth to the tune of over a billion dollars by the beginning of the twentieth century which in today's terms equals over a trillion dollars.
That India was invaded was its 'karma' to use a term from its philosophy, being as peace-loving as it is.
But that is history...
and modern day administrators must learn necesssary lessons from the past.
Countries are made rich or poor not because of races but because of politics.
If China is richer today it is because of better politics.
If India wants to be richer than it has been of late it needs to improve its politics.
There is a fair amount of negativity in China against India...
in part because it is a poor country and in part because of 'political' reasons.
However, negativity yield negative results and serves little purpose.
In the past China and India shared a lot of trust and friendship...
surely, that must have been part of the reason why both countries were once so prosperous.
If China and India want the prosperity that their ancestors once enjoyed they must both analyse their past and try to rekindle the same trust and friendship.
With a little more planning, investment and direction, India's growth can exceed a mind-boggling 15% p.
a.
and that within 5 years.
And, lately, the international media has begun to speak in one breath of China-India.
This has led to a lot of speculation, comparisons and debate among all those who are interested academically or for other reasons.
China has long been investing in its infrastructure and the results are there to see - spanking new highways, airports and a lot more.
Much of the investment has come from abroad and has helped China race ahead in its bid to develop fast.
India awakened much later than China to the need to reform and grow, riven as it is (was) by its polity and political leaders for whom the mantra of self-survival and power is all-important.
In their bid to protect their vote-banks they often neglected to do what they needed to lift the country out of its morass.
Policies seen to favour the rich in any way were soundly rejected in favour of the apparent people-friendly ones.
All this slowed the pace of needed reforms.
However, slowly and with measured footsteps of one unsure of the ground one is treading on, India's policy-makers began to move in the direction of growth, recognizing the need to overhaul their decades-old ideas and outmoded beliefs.
Each little step met with success as taxes were rationalized and red-tape reduced.
This emboldened the South Block czars and the political honchos to come out more openly in favour of development-related policies.
Slowly, the move gathered momentum and a consensus began to build up among the political parties that they needed to shake out of their Nehruvian and socialist-inspired slumber.
Recent growth in India, with GDP figures galloping ahead and the economy making remarkable breakthroughs has caused all the world to sit up and take notice.
Today, despite poverty and a host of other related problems, India's economy is showing signs of health and vigour.
What was remarkable about India's growth was that it was powered by internal resources and not by handouts from the charitable or profit-motivated rich investors.
Now, foreign investment in India is beginning to show a real presence, although still far less than in China.
Once this investment is ploughed into infrastructure and the returns begin to show, India will attract even more foreign investment.
With a little more planning, investment and direction, India's growth can exceed a mind-boggling 15% p.
a.
and that within 5 years.
This may sound far-fetched now but when the multiplier effect of spending on infrastructure coupled with greater investment kicks in these figures will bear out.
It's true that India still lags far behind China economically.
India started its reforms a good couple of decades later than China...
But the issue is not whether it will catch China or not...
The issue is whether India is able to lift millions of its citizens out of poverty and give them a decent life.
Life goes in cycles...
so does the fate of countries...
witness how India was perhaps the wealthiest country some centuries ago and the search for new European trade routes to India led to the discovery of America.
Consider for example the enormous amount of wealth that looted from India by all kinds of invaders.
Estimates suggest Great Britain alone plundered wealth to the tune of over a billion dollars by the beginning of the twentieth century which in today's terms equals over a trillion dollars.
That India was invaded was its 'karma' to use a term from its philosophy, being as peace-loving as it is.
But that is history...
and modern day administrators must learn necesssary lessons from the past.
Countries are made rich or poor not because of races but because of politics.
If China is richer today it is because of better politics.
If India wants to be richer than it has been of late it needs to improve its politics.
There is a fair amount of negativity in China against India...
in part because it is a poor country and in part because of 'political' reasons.
However, negativity yield negative results and serves little purpose.
In the past China and India shared a lot of trust and friendship...
surely, that must have been part of the reason why both countries were once so prosperous.
If China and India want the prosperity that their ancestors once enjoyed they must both analyse their past and try to rekindle the same trust and friendship.
With a little more planning, investment and direction, India's growth can exceed a mind-boggling 15% p.
a.
and that within 5 years.