World Economic Forum special report: Contents
India has been investors’ emerging market darling for a couple of years. It has lifted its growth trend from the socialist 3.5% “Hindu rate” of the 1970s, to 5.5–5.75% in 1980-2000, and now 6.5%. Its large, educated, English-speaking labour force has made it less reliant on export-led growth, China-Tigers-style, more on human capital. Savings and investment have risen to 27% and 30% of GDP respectively in 2005 – fuelling growth through a relatively developed financial sector without an “Asian glut” of savings. Finally, its well-trenched legal system, corporate governance and democratic polity make it a favourable destination for foreign investors.
Recent GDP growth of 9% is well above the 6.5% trend This is not the new “trend”...
