The Economist reports that India’s economy is growing rapidly (10.4% last year) and it may overtake China as the world’s fastest growing large economy. But this quote surprised me
… last year foreign direct investment into India fell by almost a third. This January, the year-on-year decline was 48%.
Here is the link. And why is this so? Apparently, India has failed so far to significanly reduce the barriers to getting new enterprises going. I wonder if they could outsource that. Just kidding.
So where is the growth coming from?
… India’s underlying strengths (are) the long-lasting benefits of the liberalisation of the 1990s; its favourable demographic profile; its successful diaspora now returning home in large numbers to invest; and its thriving businesses in those areas such as information technology where the government has got out of the way.