Is India’s Best Days Ahead of U.S?
Date: Thursday , March 31, 2011
This time all Indian delegates were excited about world’s billionaire Warren Buffet’s visit to India and his move to invest in Indian market. This 80 year old $62 billion worthb billionaire’s move to invest 99 percent of his wealth in India indicates a testimony to India’s promising booming economy. Moreover it calls for many of the Indians who have built global companies to take Indian market as a serious one. Well, but is India well versed to foresee its greener pastures? For instance, if you take any developed country, faster economic growth has been attained because the leaders could foresee the needs much ahead, be it heavy investments in infrastructure, massive funding for science and technology, exceptional connectivity, a public-education system that is the envy of the world and generous immigration policies.
As a country which has been envied for many such factors, America until now was under the assumption that it is still No. 1. However, today it sees the position dwindling. Now, America is realizing its mistakes and cutting down on the spent as they have the largest amount of debt in the world incurred through wars and aids.
As India is taking a similar growth trajectory to further achieve its global ranking, it can take tips from the U.S. about what to do and what not to. India is currently the second fastest growing economy of the world. India's growth potential may well be measured by the facts that India's current economy is worth $1.3 trillion , and is set to grow at an
impressive rate of 9.25 percent in coming years.
In 1991, when India opened its door to
liberalization, we set our growth path open. We achieved in 10 years what we did not achieve in
35 years before liberalization. Today the world is waiting for a similar move interms of FDI investments. The bill to raise the foreign investment cap from the current 26 percent to 49 percent in private insurance has been tabled and is with a Standing Committee of Parliament.
Instead of rejecting the bill, the committee should work on closing the loopholes on negative aspects.
Now is the need to focus on infrastructure. Even a study by Goldman Sachs states, “In the next 10 years, India needs to invest more than
$1 trillion towards infrastructure.” Recently Infrastructure mutual funds of India have shown great interest in roads, power and railways. One can judge the enormity of investment opportunities in India’s infrastructure by seeing that India is set to invest $500 billion by March’12. In the coming years, let’s hope to see best days of India much ahead than U.S.
Let’s see more Buffets docking in India in future.
Please do share your thoughts with us.