There has been a great buzz around the growth in Indian economy for last couple of years. But many believe that we have not even scratched the surface. There are many pointers right now that give compelling reasons to believe that this growth cannot be stopped – even with all the Infrastructure, diversity, un-education and population.
Infact, the last 2 points mentioned are also the main reasons for the growth that India is seeing. Even though there is a huge uneducated population, there are equal number of highly skilled Engineers and doctors. They are the pillars of India’s growing economy. Talking about population, Ajit Balakrishnan, CEO of Rediff mentioned in the interview that if you put 15 to 35 year olds of India, China and US together 10 years from now, 60% of the lot would be Indians. Everyone knows that 15 to 35 years old are the ones who make or break the economy in the country. They are the ones who have great ideas and entrepreneurship. So, population to a large extent is also fuel of this growth.
It is not only the IT and BPO sector in India that is booming. The telecommunication sector is growing like wild fire. Infosys CEO, Nandan Nilekani mentioned in the open forum that India added nearly 6 million mobile phones in Feb07 and nearly 6.6 million in March 07 and thats atleast 10% more than what China added in corresponding months.
Textile, retail, manufacturing, Auto and power all sectors are also showing commendable growth. RBI has projected a 9% growth in economy this year, however, I’d not be surprised if we touch double figures by the end of next year.
In this post I have mentioned about a lot of positive things, however along with it India has also to cope up with a lot of barriers. I am planning to write a post on it in coming few days, so stay tuned.
So the big question- What and who can derail India’s growth story ?