INDIA AND ITS COMPETITIVE STRENGTHS
HOW INDIA STACKS UP IN BRIC
Comparing India with the other members of BRIC
Recently, the BRIC (Brazil, Russia, India and Chile) countries have come to the attention of economic observers because all four countries survived the recent economic crisis better than the European and United States economies. In the cases of India and China, their failsafe mechanism was the growing internal domestic consumption in each country that sustained them through the crisis.
The Goldman Sachs thesis behind BRIC is that the economic potential of Brazil, Russia, India and China could be realised by 2050 and they could become the world’s four dominant economies as all four countries have adopted a global capitalism model. In the years following the creation of BRIC, India has attained a growth rate that projects to have a greater impact on the global economy than has been anticipated.
One distinct difference between India and the other BRICs is language.
Much to their chagrin, the Chinese have discovered that English
is not only the language of aviation but of the business world and
Russian and Portuguese, are historical afterthoughts in terms of internationally
accepted conversation. India does speak English.
Language and communication cannot be shortchanged in the business world. On a more intrinsic plane, India now has 10 of the 30 fastest growing urban centers as the migration from rural to urban settings continues in India, following a worldwide pattern in industrialized nations. In other areas of comparison, this is how India stacks up with its BRIC counterparts:
However, these gross ranking’s do not truly reflect India’s progress in the 21st century. Since 2003, India has been one of the fastest growing economies, with rapid increases in per capita income, and demand and integration with the global economy, according to a 2007 Goldman Sachs report authored by Tushar Poddar and Eva Yi.
Poddar and Yi suggest that “there has been a
structural increase in India’s growth rate since 2003 on
the back of high productivity growth.”They suggest that,”India will overtake the G6
economies faster than envisaged in our earlier BRICs
Another factor in India’s potential that surpasses other negative aspects is the population growth rate. India will have a larger number of younger workers than any other country as the century progresses.
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