An Expert's View about Business Environment in India

Posted on: 14 Jul 2012

India's Economic Reforms

ECONOMIC REFORMS IN INDIA: EXPERIENCES AND EMERGING DIMENSIONS By, Dr. R. SHASHI KUMAR M.A., M.Phil., Ph.D. READER DEPARTMENT OF ECONOMICS BANGALORE UNIVERSITY BANGALORE—560 056 KARNATAKA STATE INDIA E-mail : Mobile : 098444 17452 Residence Phone: 0816-22 00 878 1. INTRODUCTION Globalization is evolving fast. The traditional areas of strength are shifting. The consumerist areas of the West are becoming less strong as the economic balance shifts. The producing areas of the East are becoming less strong as wider factors come into importance. Globalization is spreading—and with significant consequences. In just over a decade, India has grown into one of the world’s leading economies. Out of an economic crisis that saw the country’s gross domestic product (GDP) growth reduced to just 1.1 percent in 1991, India now enjoys a current growth rate of 8 percent annually, making it second only to China as the world’s fastest-growing economy. Today, the country, which had long been one of the richest nations on earth prior to the 1800s, is once again becoming a global economic powerhouse—the world’s fourth- largest economy after the United States, China, and Japan (as measured by GDP at purchasing power parity in 2008). 1 What is particularly impressive about India’s recent growth is the distinctive way in which it has been achieved. Typically, poorer countries grow through low technology, labor-intensive processes that accelerate with the strong export of manufactured goods, which has been the primary driver for growth in China. By contrast, a large proportion of India’s growth comes from high technology processes requiring skilled labor, in which exports of services have played a key role. This growth pattern has resulted in services becoming the largest component of the Indian economy—contributing 51 percent of GDP—making India’s situation unique in the developing world. How did India achieve such atypical, yet dramatic success with a service-driven economy? In simple terms, it had enough of the right ingredients to make it the right environment at the right time to do so. Those ingredients—changes that eased its regulatory environment, an available supply of skilled workers who, very importantly, spoke fluent English, and the minimum physical infrastructure—have helped India become an outsourcing destination of choice for many global technology services companies since the mid-1990s. A more important question, however, is whether India will continue to have enough of the right ingredients to continue its growth and further build an innovative services sector that is integrated into global services supply chains. Its recent successes notwithstanding, India faces some significant internal and external pressures that could derail growth if not managed effectively. Its physical infrastructure, for example, is strained to capacity at the same time that other countries—most notably, China—are investing to create attractive environments that could enable them to leapfrog India as the leading service economy in the developing world. This paper briefly examines some of the challenges for India to address in order to ensure its continued growth as a leading service economy. Further, simplifying its regulatory environment to make it easier to initiate and conduct business in India in a way that is similar to other global environments 2. ECONOMIC REFORMS OF INDIA The New Economic Policy can be divided into two parts: the stabilisation programmes and the structural adjustment and reform programmes. While the former part basically aims at reducing macroeconomic imbalances (such as fiscal and current account deficits) by restraining aggregate demand, the latter essentially aims at increasing growth, by eliminating supply bottlenecks that hinder competitiveness, efficiency and dynamism to the economic system. 2 Indian Economic Policy was influenced by a Fabian-socialistic approach with emphasis on protectionism, import substitution, industrialization, state intervention in labor and financial markets, and central planning. The government had strict restrictive economic policies over the private sector participation, foreign trade and foreign direct investment. The first breakthrough came with Jawaharlal Nehru and statistician Prasanta Chandra Mahalanobis, who emphasized on more flexible economic policies involving both public and private sectors based on direct and indirect state intervention. However, the economic policy changed after 1980 with the removal of restrictions on capacity expansion for incumbents, price controls and reduction in corporate taxes. The revolutionary change came with the economic liberalization of 1991, undertaken by the then prime minister of India, P. V. Narasimha Rao and the finance minister Manmohan Singh. Considering the balance-of-payments crisis, they formulated a new set of economic policy in India, ending many public monopolies and allowing automatic approval of foreign direct investment in many sectors of the Indian economy. The New Economic Policy at present comprise of:  Civil Aviation Policy  Foreign Direct Investment Policy  Drug Policy  Industrial Policy  Broad Band Policy 2004  National Electricity Policy  New Telecom Policy 1999  Foreign Trade Policy  Exim Policy  National Mineral policy  Monetary and Credit Policy  Non-Resident Indians (NRIS) Policy  Current Export-Import Policy  Current Monetary And Credit Policy  Indian Direct Investment In Joint Ventures And Wholly Owned Subsidiaries Abroad  Policies And Procedures For External Commercial Borrowings  Overseas Venture Capital Investment In India  Baggage Rules for Indian residents or foreigners residing in India. At present, the New Economic Policy has made India as one of the most prosperous economy of the developing world. Indian economy is one of the most preferred destinations for the foreign direct investments especially in the real-estate sector, in which from March 2005 onwards, FDI is allowed 100 percent, as per the India Economic Policy. 3 3. INDIA AND THE WORLD ECONOMY India’s economy has been one of the stars of global economics in recent years, growing 9.2 percent in 2007 and 9.6 percent in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. From a long-term perspective, the prospect of China becoming the world’s largest economy, and India the third largest, within the next 10-15 years, represents a return to the order which has prevailed throughout most of human history. According to some reports, China and India accounted for around half of global GDP (see figure 1). For much of this period China and India were intact polities, had the world’s largest populations and were technological leaders. Figure 1 Major Economies’s Share of Global GDP, 0-2008 40 35 India 30 25 China 20 World 15 10 Japan 5 0 1000 1500 1600 1700 1820 1870 1913 1950 1973 1991 2000 2008 Sources: OECD Development Centre, 2001: IMF, World economic Outlook Database, 2008 This shows the annual growth rate of India’s GDP compared to that of other developing countries or regions from 1961 to 2001. While in the fifties, Indian economic growth had reached almost 4 percent a year, this growth rate stagnated around 3.5 percent a year in the sixties and seventies; it accelerated to 5 percent in the eighties and to 6 percent in the nineties. Indian economic performance has regularly improved compared to world average. In the sixties, it was significantly below world level, but in the seventies, it kept pace with world average as the latter slowed down. In the eighties and nineties Indian economic growth stood well above world average. However Indian performance fell short of what was achieved by China. 4 4. GDP AND PERCAPITA INCOME GROWTH RATE India has grown by leaps and bounds in recent years and is emerging as a major world economic power. After lumbering along at a pace of about 4–5 percent GDP growth a year in the 1980s and the 1990s, the economy has surged in this decade, posting an average annual growth of 8.5 percent since 2005 (see figure 2). The challenge now is to maintain this growth momentum and provide benefits as well as economic opportunities to a broad swath of the population. India’s financial system—comprising its banks, equity markets, bond markets, and myriad other financial institutions—is a crucial determinant of the country’s future growth trajectory. The financial system’s ability to channel domestic savings and foreign capital into productive investment and to provide financial services—such as payments, savings, insurance, and pensions—to a vast majority of households will influence economic as well as social stability. While India’s financial institutions and regulatory structures have been developing gradually, the time has come to make a more concerted push toward the next generation of financial reforms. A growing and increasingly complex market-oriented economy, and its greater integration with global trade and finance, will require deeper, more efficient, and well- regulated financial markets. Until recently, India has seen strong growth coupled with moderate inflation during the current decade, although now prices are climbing rapidly again. Figure 2 GDP and CPI, A Comparative Analysis 12 10 8 6 4 2 0 1985-89 1990-94 1995-99 2000-04 2005-08 GDP CPI Sources: IMF, 2008 5 Percentage India always held great promise. Soon after independence, in 1947, its foreign reserves were among the worlds largest, at US $2.1 billion in 1950. It accounted for 2.4 percent of global trade. It was one of the prosperous countries in terms of growth in GDP and overall economic activity; certainly ahead of China. The following figure shows the growth of per capita income of India from 1950 to 2008. 4.1. Per capita Income Figure 3 India – Per Capita Income (GNP at factor cost, Constant prices, Indian rupees per year)* 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 0 0 0 0 0 2 4 6 8 0 2 4 6 8 5 6 7 8 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 1 1 1 1 2 2 2 2 2 At 1993-94 rupees Source: Reuters, EcoWn Despite several problems facing the Indian economy many economists point to potential strengths of the Indian economy which could enable it to continue to benefit from high levels of economic growth in the future. 5. AGRICULTURE, INDUSTRY AND SERVICE SECTORS In the India of old, there was no conventional business cycle. A good year was one with a good monsoon and a downturn was generally about a bad monsoon. These developments played out over a short horizon of one or two years. Output fluctuations significantly reflected a succession of uncorrelated monsoon shocks—it was not a conventional business cycle. 6 A major change in the behaviour of the Indian macro economy, then, consists of the rapidly dropping importance of agriculture. As Figure 1 shows, the share of agriculture in GDP has dropped quite sharply from 27 percent in 1996-97 to 17.5 percent in 2006-07. In addition, the vulnerability of agriculture to the monsoon is declining through the spread of irrigation. The linkages between agriculture and the economy are weakening. Putting these factors together, the domination of monsoon shocks in influencing the macro economy has been substantially attenuated. Traditionally agriculture has remained the backbone of India’s economic growth. The weather related crisis such as drought, flood and cyclone has affected the agriculture production and ultimately the growth in overall economic activities. In 60s, the contribution of agriculture to GDP was around 50-55 percent. Over the period, the share of agriculture to GDP has declined drastically to around 20 percent. The share of industry has improved marginally. The share of services sector to GDP has increased significantly. However, it must be noted that agriculture still employs almost 60 percent of the population. Besides, social problems such as poverty, inequality are widespread in rural areas. The benefits of ‘Green revolution’ have been limited to certain areas and there is an urgent need to innovate and implement the new techniques of farming in both existing and new areas (refer figure 4). Figure 4 Agriculture, Industry and Services Sector 70 60 50 40 30 20 10 0 1960 1966 1972 1978 1984 1990 1991 1994 1996 1998 2000 2004 2008 Agriculture Industry Services Source: RBI Bulletins. 7 6. INDIA’S EXTERNAL TRADE Export growth in India has been much faster than GDP growth over the past few decades. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI). However, despite increasing inflows of FDI especially in recent years there has not been any attempt to assess its contribution to India's export performance of the channels through which FDI influences growth. Using annual data for 1970-98 we investigate the determinants of export performance in India in a simultaneous equation framework. Results suggest that demand for Indian exports increases when its export prices fall in relation to world prices. Furthermore, the real appreciation of the rupee adversely affects India's exports. Export supply is positively related to the domestic relative price of exports and higher domestic demand reduces export supply. Foreign investment appears to have statistically no significant impact on export performance although the coefficient of FDI has a positive sign. The following figure 5 highlights India’s balance of trade. Figure 5 India’s Balance of Trade 120,000 100,000 80,000 60,000 40,000 20,000 0 1984 1994 2003 2004 2008 Total Exports Total Imports Source: CMIE Bulletins. 8 6.1. Trade Orientation of the Indian Economy Since the major economic reforms were initiated in mid 1991, the trade orientation of the Indian economy has increased significantly. Thus trade (Export plus import) to GDP ratio increased from 14.6 percent in 1990-91 to 23.5 percent in 2003-04. The share of export as well as import in GDP has shown similar movements indicating that the supply capability as well as absorption capacity have improved simultaneously over the years (refer table 1). Table 1 Trade Orientation of the Indian Economy (In percent) Export/GDP Import/GDP 1990-91 5.8 8.8 1999-2000 8.4 12.4 2000-01 9.8 13.0 2001-02 9.4 12.0 2004-05 10.3 12.8 2007-08 10.4 13.2 Source: Reserve Bank of India, Annual Report 2007-08. The New Economic Policy of 1991 included standard structural adjustment measures including the devaluation of the rupee, increase in interest rates, reduction in public investment and expenditure, reduction in public sector food and fertilizer subsidies, increase in imports and foreign investment in capital-intensive and high-tech activities, and abolition of the cash compensatory support for exports. Slowly but steadily India’s share in global merchandise trade has improved from meager 0.5 percent (in early 1990s) to 1 percent (2007). The share of merchandise trade to GDP has increased substantially to almost 35 percent. In early 1990s, India had foreign reserves for hardly 3 months. The outward looking policy has accentuated the foreign reserves to US$ 170 billion in 2006 from US$ 5 billion in 1993. The huge pool of foreign reserves would help to manage not only rising imports but also external debt (figure 6). 9 Figure 6 Foreign Reserves 18 300 16 250 14 12 200 10 150 8 6 100 4 50 2 0 0 1 4 6 8 0 2 4 6 8 9 9 9 9 0 0 0 0 0 9 9 9 9 0 0 0 0 0 1 1 1 1 2 2 2 2 2 Import cover of foreign reserves (LHS) Foreign Reserves (RHS) Source: RBI Bulletins. The Indian foreign exchange market has witnessed far reaching changes since the early 1990s following the phased transition from a pegged exchange rate regime to a market determined exchange rate regime in 1993 and the subsequent adoption of current account convertibility in 1994 and substantial liberalisation of capital account transactions. Market participants have also been provided with greater flexibility to undertake foreign exchange operations and manage their risks. This has been facilitated through simplification of procedures and availability of several new instruments. 7. INFRASTRUCTURE AND INVESTMENT The development of infrastructure is critical to keep the Indian economy on new growth trajectory. This is one area where there is a need for private sector and foreign investment to come in. Because of the long gestation period, and many social implications, the infrastructure sector competes unfavorably with manufacturing and many other sectors. For this, specific policies in this area are needed to make infrastructure attractive. Clearly, there is a wide gap between the potential demand for infrastructure for high growth and the available supply. This is the challenge placed before the economy, i.e. before the public and private sector and foreign investors. This can also be seen as an opportunity for a widening market and enhanced production. The following figure 7 shows different prospects of investment avenues in Infrastructure. Also, the figure 8 shows the investment destiny of India. 10 Percentage US $ billion Figure 7 Investment Avenues in Infrastructure, 2008 Power Urban Generation, Infrastructure, 4,100 1,974 Highways, 2,200 Railways, 3,000 Ports, 500 Energy, 2,120 Airports, 400 Source: Indian Economic Surveys. Figure 8 FDI and Portfolio Investment 100% 80% 60% 40% 20% 0% 1991-92 1992-93 1995-96 1999-00 2001-02 2005-06 2007-08 Foreign Direct Investment Portfolio Source: Economic Survey, India 11 8. POVERTY AND INEQUALITY Although poverty has continued to fall with economic reform, it is evident that growth in and of itself will not eliminate poverty. Over a quarter of the country continues to live in poverty. The widening of regional and interstate disparities during the 1990s, despite overall economic liberalization, highlights the importance of strengthening slow growing states. In China, there are relatively few poor, rural areas, but in India, these are the heartland. Wealth is generally more concentrated in urban rather than rural areas where the majority of the people are living (refer figure 9 for more details). Figure 9 India Poverty Rate 80 70 60 50 40 30 20 10 0 1960 1965 1970 1980 1991 1995 2000 2005 2008 Total Rural Urban Source: The World Bank Reports. 9. SUCCESS The Indian economy has been on an upward growth path. In the fiscal year just ended in March 2007, growth of GDP in real terms was 9.4 percent. The average growth rate over the last two years was 9.2 per cent and over the last four years 8.6 percent. In the Tenth Five Year Plan period from 2002-03 too 2006-07, real GDP grew at 7.6 percent per annum. While being lower than the target growth rate of 8 percent per annum, (mainly because of the poor growth rate in the first year of the Plan), this growth was higher than in any earlier Five Year Plan. The following is the important success story of Indian economy. 12 Percentage 9.1. Growth Rate The growth rates of 8.5 percent to 9.5 percent per annum observed in the most recent years have to be seen against the background of a slow and stagnant growth rate of 3½ percent per annum over the three decades from 1950 to 1980 and a significantly improved growth performance of 5.8 percent per annum during the two decades from 1980 to 2000. With population growth of close to 2 percent per annum, the period from 1950 to 1980 saw per capita income increase at the rate of 1.5 percent per annum. By contrast, the most recent years have seen per capita income increasing at 7.5 to 8 percent per annum as population growth has declined to 1.5 percent. 9.2. Poverty declines but challenge remains The percentage of population in poverty (officially defined as consuming below a certain level) declined from around 50 percent in 1980 to 28 percent in 2004-05. An alternative estimate using slightly different sampling methodology suggests that poverty declined from 26 percent in 1999-00 to 22 percent in 2004-05. Even at 28 percent, close to 300 million people remain below the poverty line. In any case, the estimate is based on a narrow definition of poverty rather than a multidimensional definition which incorporates social development indicators of health and education. India’s record on social development has been poor. To sum up, while India’s economic performance is showing strong improvement, the challenge of alleviating poverty remains large. 9.3. Private sector is the driving force The acceleration in growth in the past five years or so is largely driven by the private sector. We are not only reaching the South-East Asian levels of saving (32.4 percent) and investment (33.8 percent) rates but the private sector has played a major role in generating these savings and investment. The rate of private investment in 2005-06 was 26.4 percent, up from 15 percent in 1996-97. Over the same period, the rate of public investment increased marginally from 7 percent to 7.4 percent. 9.4. Reforms were steered forward within a robust democratic regime A very important feature of India’s economic reforms is that they were steered forward by four different democratically elected governments at the Centre and numerous other governments at the state level which represented different political parties or their combinations. The policy changes were debated in a noisy atmosphere of an open and vibrant media and pursued with active involvement of the civil society. China still has to face this music. In India, a robust democratic regime has ensured that slowly and surely the mindset has moved away from controls towards competition – domestic as well as international. 13 9.5. Infrastructure The inadequacy and poor quality of infrastructure has been known for some time to be a major challenge for sustaining growth rates of 7 to 8 percent for the Indian economy. The acceleration in the growth rate to 8.5 to 9.5 per cent in recent years has heightened these concerns, but the progress on infrastructure reforms as well as outcomes has been mixed. The new paradigm for infrastructure development is that of public private partnership based on model concession agreements emphasizing accountability and transparency. While there has been a sea change in telecommunications and significant reforms have been undertaken in the area of airports, ports and civil aviation, and more recently in roads and railways, there is a real problem with electric power. 9.6. Agriculture This sector has not shared in the resurgence of growth in India. After 1996-97, growth was an annual average of 1 percent up to 2000-01 and 2.5 percent from 2001-02 to 2006-07. Problems in Indian agriculture are either related to stagnant productivity levels requiring heavy doses of research and improved practices of water management and cultivation, etc., or those that are directly the result of government policy design, e.g., spiraling input subsidies for agriculture which have eaten into government’s capacity for public investment, inefficient marketing systems, and a highly inefficient public distribution system at subsidized prices for consumers. In times of agricultural shortages in recent months policies have also resorted to knee-jerk reactions such as export bans (as in the case of pulses) and a ban on future trading (as in the case of wheat). 9.7. Human Capital Increasingly, skill shortages are emerging as a major challenge to sustaining the high growth rates of the manufacturing and services sectors. We often hear of the demographic dividend in that 50 percent of India’s population today is of working age. Also, unlike what is the case in major economies such as China, Brazil, USA and Japan, this proportion is projected to continue to increase until 2035. It is also true that India today has the youngest labour force in the world. This has implications for increases not only in the labour force but also in the saving rate and in the pace of urbanization. However, this young labour force has to be equipped with a skill set which is in demand as the high growth rate continues and accelerates. The challenge is to provide high quality education as well as adequate opportunities for productive employment. 14 9.8. India’s Destiny The following figure 10 shows India’s provision of becoming one of the competitive economies of the world. By 2020, if India accelerates all its resources, it would become one of the greatest economic powers of the world. Figure 10 India's Destiny 12 10 8 6 4 2 0 2006 2007 2008 India China G-7 Countries Newly Industrialized Asia World Source: World Development Reports 10. PROBLEMS OF INDIAN ECONOMY One reason why importing, exporting, and transporting goods is as slow and difficult in India is the lack of sufficient networks over which to move them. Despite the fact highways are used to transport 80 percent of goods in the country, they comprise only 2 percent of the country’s roads. The technological revolution that has occurred in global shipping, which has resulted in containerized shipping and consolidation among shippers, in turn resulting in port consolidation, has passed by India. The country cannot handle the large capacity vessels that account for one-quarter of global container capacity, and its inefficient ports are a key factor in its extended imports and exports. But while India continues to have enough talented workers to meet most of the needs of its services sector, these workers represent just a small portion of the population. Most Indians lack the skills to participate in a service economy, and continue to be employed in low-skilled, rural occupations. Three-quarters of the population leave school before finishing the eighth grade, and almost 40 percent of the population is illiterate. Most adult Indians—almost two-thirds during the 1990s—are not employed, primarily because very few adult females are in the workforce. Just imagine the contributions to the Indian economy that could be made if an additional 10 percent of the population—some 110 million people—became literate, or if more women joined the workforce. The following are the major problems of Indian economy. 15 1. Inflation: Fuelled by rising wages, property prices and food prices inflation in India is an increasing problem. Inflation is currently between 12 to 15 percent. A record 98 percent of Indian firms report operating close to full capacity with economic growth of 9.2 percent per annum inflationary pressures is likely to increase, especially with supply side constraints such as infrastructure. 2. Poor educational standards: Although India has benefited from a high percent of English speakers. (Important for call centre industry) there are still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50 percent of Indian women are illiterates. 3. Poor Infrastructure: Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Over 40 percent of Indian fruit rots before it reach the market; this is one example of the supply constraints and inefficiency’s facing the Indian economy. 4. Balance of Payments deterioration: Although India has built up large amounts of foreign currency reserves the current account deficit has deteriorate in recent months. This deterioration is a result of the overheating of the economy. Aggregate Supply cannot meet Aggregate demand so consumers are sucking in imports. Excluding workers remittances India’s current account deficit is approaching 5 percent of GDP. 5. High levels of debt: Buoyed by a property boom the amount of lending in India has grown by 30 percent in the past year. However there are concerns about the risk of such loans. If they are dependent on rising property prices it could be problematic. Furthermore if inflation increases further it may force the RBI to increase interest rates. If interest rates raise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future. 6. Inequality has risen rather than decreased: It is hoped that economic growth would help drag the Indian poor above the poverty line. However so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. Many of India’s rural poor are yet to receive any tangible benefit from the India’s economic growth. More than 78 million homes do not have electricity. 33 percent (268 million) of the population live on less than $1 per day. Furthermore with the spread of television in Indian villages the poor are increasingly aware of the disparity between rich and poor. 7. Large Budget Deficit: India has one of the largest budget deficits in the developing world. Excluding subsidies it amounts to nearly 8 percent of GDP. Although it is fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education. 16 11. SUGESTIONS FOR BETTER PERFORMANCE The following are the important steps that India has to take for its continuous competitiveness in the world economic situation.  Increase taxes on services and implement a tax on e-commerce;  Modernize tax administration through better utilizing technology;  Use technology to better enforce property and agricultural income taxes;  Institute mechanisms like greater public transparency to increase accountability.  Design strategies to increase venture capital;  Further reduce import duties and restrictions;  Reduce costly procedures for exporting finished or intermediate goods;  Attract foreign investment to meet demand for infrastructure projects;  Further reduce reservations for small businesses; and  Formalize special economic zones (SEZs), where normal investment and trade restrictions do not apply, to help leverage further reform.  Implement major public works projects, taking advantage of public- private partnerships where possible;  Deregulate wage practices.  Labor reforms should be coupled with the creation of a stronger social safety net to support affected employees. 12. CONCLUSION Undoubtedly, India will develop further innovations as it continues to address the regulatory, infrastructure, and other challenges it faces today. How well it does so, however, will depend on how committed it is to building a modern business environment. While some of India’s recent success occurred by design—its easing of various business regulations—much more was due to fortunate happenstance: the availability of a large English-speaking workforce (a benefit of the country’s colonial past) and the development of global technology infrastructures (which allowed companies to seamlessly move operations offshore to India). Further expanding its market economy will require much more proactive measures. China, for example, is already investing significantly more to create a more globally competitive business environment. While India’s democratic government may make it harder to quickly enact changes and weather any short-term hardships related to those changes, it must nevertheless be as diligent as China in implementing a systematic, planned approach to building its economy if India is to sustain its current success. 17
Posted: 14 July 2012

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