India Should Embrace Modern Economy Path: U.S. Think Tank

WASHINGTON: With a new government due to be formed in India in more than a month from now, a prominent American think tank has urged the country to embrace a path towards modern economy to reverse its slow growth. "To reverse its slow growth, spur global competitiveness, and restore the Indian Economic Miracle, India should instead embrace a 'Modern Economy Path' that aims to spur across-the-board productivity growth across all sectors-based on competitive markets, liberalized trade, and robust innovation policies," the Information Technology and Innovation Foundation said in a report.

The U.S.-based think-tank on IT in its major report 'The Indian Economy at a Crossroads' said this strategy will create strong innovation-based industries at home that can effectively compete globally, while providing a much more effective strategy to achieve the broad and sustainable income and employment growth India seeks. Running into more than 130 pages, the report said that India's economic success this past decade is increasingly threatened by innovation mercantilist policies- like Preferential Market Access rules for government procurement of ICT products and compulsory licensing of bio pharmaceutical intellectual property- designed to promote selected domestic industries, even at the expense of other Indian industries and Indian consumers.

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