This visionary and thought-provoking study is a must read for political leaders, policymakers, business executives, and leaders of civic society interested in India's long-term development. It presents a much needed longer term vision of Indian society and economy within which today's policy debates and actions must be anchored. The volume presents a persuasive case that if India succeeds in sustaining its recent economic success over the longer term (as many East Asian economies have done in the past), India can realistically aspire to become an affluent society within one generation. The study is being released just as the new Indian government is taking office in a political environment that presents a truly unique opportunity to put India into a longer term sustained growth trajectory with financial stability.
Chapter 9: Global Competitiveness Through Technology
Global Competitiveness Through Technology
The Indian growth story has captured the imagination of the world. This growth has come mainly from productivity gains as workers move from farms to services. Sustaining a long-term growth trajectory can transform India into an affluent nation within a generation. India could become the second largest economy in the world (surpassing the United States) with a per capita income of 22,000 dollars. To realize this potential (and grow like South Korea and Japan, without falling into the “middle income trap” like Brazil), India must rapidly and continuously enhance global competitiveness and improve productivity of its economy. This needs a strong strategy, where perpetual gains from a workforce that creates, acquires, and uses knowledge ...