In the case of India, in sectors where there hasnt been that much of a productivity hike, this process is clearly visible. Which is why it has lost out to countries like Bangladesh in the global textiles trade and even saw one class of BPOs relocate to the Philippines as local wages shot up. What has to be particularly galling, however, is that a recent OECD report on the outlook for Asia has a section on how long it will take various countries to become high income countries. That Malaysia will reach this milestone in 2020 is no surprise, nor is it that China will reach this level a few years later, in 2026. Thailand will reach rich income status in 2031, Indonesia in 2042 But how do you explain Vietnam becoming a high income country in 2058, a full year ahead of India This is not even a country Indian businessmen will recognise as a competitor. Just goes to show what happens to countries whose leaders go to sleep at the wheel.