Hi,
Please find attached the report titled “India”s Rising Growth Potential” by Goldman Sach, January 22, 2007
The report tries to track economic growth of India since 2003 and reasons fueling this growth. Key take away from this reports are:
The report tries to track economic growth of India since 2003 and reasons fueling this growth. Key take away from this reports are:
Rapid Indian Growth:
-
India”s economic growth is expected to average around 8% till 2020
- GS projects India”s potential average growth to be an 6.9% for the period 2006-2050
- India”s GDP is expected to surpass US GDP by 2050, making it second largest economy, next only to China
Primary reasons for this growth would be:
- Favorable demography
- Turnaround in manufacturing sector
-
Re-allocation of land, capital, and especially labor from low-productivity agriculture to high-productivity industry and services
- Trade openness
- Cheap credit
What could emerge as spoil sport for India”s economic party:
- Political instability
- Social instability
- Supply-side constraints in business such as shortfalls in educational attainment
- Environmental degradation.
Remedy for sustaining rapid growth: “FORCE”
F : Financial deepening,
O: Openness to trade,
R: Rural to urban migration,
C: Capital deepening,
E : Education and Environment
F : Financial deepening,
O: Openness to trade,
R: Rural to urban migration,
C: Capital deepening,
E : Education and Environment
Hope you enjoy reading it !!!
