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The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.

September - 2007 - issue > Cover Feature

Indias second Independence

Jagdish.N.Sheth
Saturday, June 28, 2008
Jagdish.N.Sheth
While India’s political freedom is 60 years old, its economic freedom is only 16 years old. It took birth in 1991, when the government abandoned the planned economy model manifested in what was labeled as the “license Raj” in favor of free market economy. What has been achieved in such a short span of 16 years is impressive.

First, it has become one of the fastest growing economies in the world (8-9% annually with low to moderate inflation) compared to the Hindu rate of growth (2% or less) since its second independence.

re than U.S. $300 bn in reserves through export growth especially in services sectors such as IT and ITES as well as by attracting all types of investments (stock market, private equity, and foreign direct investment) into India. This is destined to cross U.S. $500 bn within the next two to three years.

Third, India’s stock market has performed extremely well creating significant wealth for all types of investors including main street citizens through mutual funds, foreign institutional investors (FII), and especially for entrepreneurs and promoters.

Fourth, it has also produced several large new enterprises such as Reliance, Infosys, and Bharti and re-energized traditional business houses like Tata, Birla, and even many public sector units (PSUs) including ONGC, Maruti, SBI, and LIC. The combined market caps of these enterprises since 1991 is nothing short of spectacular. Finally, India’s economy has been increasingly and steadily getting globally integrated both economically and politically.


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