India’s next test: spreading prosperity
Monday, June 26, 2006
Excerpt: Much has been written about the incredible strides India has taken since 1991, when it opened up its markets to foreign investors and slashed regulations. With 6 percent to 8 percent growth rates over the past decade, India has become a hot spot for investors, a dynamo in the outsourcing and high-tech industries, and a competitor for headlines with that other emerging economic power, China.
Yet, while India has changed dramatically – with a rising consumer economy attracting everyone from Dell to Honda to Starbucks – a growing number of foreign diplomats, Indian academics, and businesses warn that the booming growth will fizzle unless India acts soon to spread the benefits to a wider population and boost investment in roads and airports, electricity and water, and basic education.