Two sides of India’s economic miracle

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India is very much in the news in the global economic press. Its consistent high growth, stable prices and burgeoning foreign exchange reserves are well acknowledged. In IT and ITes, India is a recognised world leader. The World Bank, IMF and institutional investors have praised India’s economic management in the past two decades. Several economists are projecting China and India to be the super economic powers by the end of this century, even surpassing the USA.

There are reasons to feel proud and happy. India has come a long way since the economic crisis of 1991. What is more creditable is that the reform programme launched in 1991 has been steadfastly adhered to by all governments that have came to power. The growth momentum has also contributed to a significant reduction in poverty rates. India has successfully withstood all major global shocks, including the recent hike in oil prices. It has emerged as a proactive player in the Doha Round, in sharp contrast to the Uruguay Round negotiations in the early 1990s, where India’s stance was a defensive one, aimed at safeguarding its national interests at all costs. India is pushing for liberalisation of services, which is inducing protective reactions on the part of the industrialised powers. Many developing countries are interested in our reform program and economic progress. I was in Damascus last month to explain the details of our reform package to the Syrian government who are keen to follow it up with our policymakers. Several important countries are keen on engaging in an FTA with India.