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 3: Realizing the Potential: Managing Multiple Transformations Simultaneously
Realizing the Potential: Managing Multiple Transformations Simultaneously
[Page 38][Page 39]Managing the transformation of any economy, especially a giant like India's, is a daunting task. Over the next 30 years, India will almost certainly see an initial worsening of its income distribution, as parts of its economy benefit from integration with the global economy while other parts are left behind. It will also face pressures from other developing economies for a share of world exports. Its service exports have rapidly grown to global scale, but it has been much less successful in its manufacturing exports. Unlike China, Japan and South Korea in the past, India's march to prosperity must take place in a different world. And its sheer size ...