Can India achieve a high-income status by 2050 when it celebrates the centenary of its Republic?
Will the nation eliminate absolute poverty and improve its human development record?
This book emphasizes the centrality of a trade-oriented services sector led by communication, business services, health, education, research, and innovations for achieving these growth targets. It also argues that inclusiveness, financial prudence, and low-carbon lifestyles are preconditions to long-term growth.
India can achieve such prosperity neither through the socialistic policies of 1950–80 nor through the neo-liberalistic policies since 1980. It needs to, instead, follow a middle-path approach closer to the systems adopted by Germany and the Nordic countries. It is within this framework that India will devise its independent development paradigm rooted in its own traditions and realities.
Chapter 7: Financially Sustainable Resource Mobilization
The world economy is going through a deep financial crisis and its costs in terms of real sector are all too evident. By 2013, the cumulative potential output lost from the baseline trend of world GDP during 1994–2007 was about 30 percent of GDP in 2007, i.e., about $12 trillion at 2007 prices, more than the GDP of India and China combined. And of course the crisis is by no means over. Growth rate is low and unemployment level is high in most of the high-income countries and there is a marked slowdown in growth in most emerging economies. Particularly worrisome is the likely impact of exit policy from the current cheap money policy that central banks ...