[quote name='ankit-s' date='03 March 2010 - 04:00 AM' timestamp='1267568531' post='104733']
You are once again banking on future of India and its future progress - look at PRESENT and try to compare apples to apples, and in the same vein, India has the lowest TAX GDP ratio collection. I have White House to sell too in Washington DC you wanna buy!
[/quote]
[url="http://India's elephant charges on through the economic crisis"]India's elephant charges on through the economic crisis[/url]
Stimulus has its costs. The central government's fiscal deficit expanded from 2.6 per cent of GDP in 2007-08 to a provisional figure of 5.9 per cent in 2009-09 and an estimate of 6.5 per cent for this year. If one includes the states, the deficit jumped from 4 per cent of GDP in 2007-08, to 8.5 per cent in 2008-09 and a forecast of 9.7 per cent this year. India's nominal GDP grew at an average rate of 14 per cent {nominal}between 2004-05 and 2009-10. That makes deficits of 10 per cent of GDP quite sustainable. I wish that were equally true of the UK.
...
But India has had a "good crisis". Now its task is to unwind the exceptional support given to the economy and push through the reforms needed to sustain fast and inclusive growth.
Before the crisis the country's gross savings rate had hit 36 per cent of GDP (see chart). Given the country's attractions to long-term foreign capital, that would allow an investment rate of close to 40 per cent of GDP.
The extent of the optimism became evident during a week spent in India last month. Among the highlights was a conference on a book of essays in honour of Montek Singh Ahluwalia, deputy chairman of the planning commission and, after Manmohan Singh, prime minister, India's most influential economic policymaker of the last two decades (and a friend of mine for 39 years).*
I was struck by the upbeat tone of the essay on "macroeconomic performance and policies, 2000-8" by Shankar Acharya, a former chief economic adviser to the Indian government. Dr Acharya is the most sober of competent analysts of the Indian economy. Indeed, the book gives a strong sense of the confidence of the technocratic elite in India's performance and prospects. Similar confidence is palpable among the business elite. This confidence makes this a radically different India from the one I knew when I was the senior divisional economist for India, at the World Bank, in the mid-1970s.
The emergence of an elite consensus on where the country is going is clear to any regular visitor.
When entering the commerce ministry, bastion of opponents of open markets in the 1970s, I was struck by a poster describing India as the "world's largest free-market democracy".
Another feature is the belief that the pragmatism of India's policies, particularly over global finance and the balance of payments, had proved correct. Those in charge of a vast country with so many vulnerable people are rightly wary of making their economy hostage to the sociopathic tendencies of the financial sector.
Exhausted by the burden of its pretensions, the UK should soon offer its seat on the security council of the United Nations to its former colony. Its condition would be that France does the same in favour of the European Union. Whether or not such enlightened statesmanship is forthcoming (presumably not), we are moving into the age of continental superpowers. Asia will be home to not one, but two, of them.
You are once again banking on future of India and its future progress - look at PRESENT and try to compare apples to apples, and in the same vein, India has the lowest TAX GDP ratio collection. I have White House to sell too in Washington DC you wanna buy!
[/quote]
[url="http://India's elephant charges on through the economic crisis"]India's elephant charges on through the economic crisis[/url]
Stimulus has its costs. The central government's fiscal deficit expanded from 2.6 per cent of GDP in 2007-08 to a provisional figure of 5.9 per cent in 2009-09 and an estimate of 6.5 per cent for this year. If one includes the states, the deficit jumped from 4 per cent of GDP in 2007-08, to 8.5 per cent in 2008-09 and a forecast of 9.7 per cent this year. India's nominal GDP grew at an average rate of 14 per cent {nominal}between 2004-05 and 2009-10. That makes deficits of 10 per cent of GDP quite sustainable. I wish that were equally true of the UK.
...
But India has had a "good crisis". Now its task is to unwind the exceptional support given to the economy and push through the reforms needed to sustain fast and inclusive growth.
Before the crisis the country's gross savings rate had hit 36 per cent of GDP (see chart). Given the country's attractions to long-term foreign capital, that would allow an investment rate of close to 40 per cent of GDP.
The extent of the optimism became evident during a week spent in India last month. Among the highlights was a conference on a book of essays in honour of Montek Singh Ahluwalia, deputy chairman of the planning commission and, after Manmohan Singh, prime minister, India's most influential economic policymaker of the last two decades (and a friend of mine for 39 years).*
I was struck by the upbeat tone of the essay on "macroeconomic performance and policies, 2000-8" by Shankar Acharya, a former chief economic adviser to the Indian government. Dr Acharya is the most sober of competent analysts of the Indian economy. Indeed, the book gives a strong sense of the confidence of the technocratic elite in India's performance and prospects. Similar confidence is palpable among the business elite. This confidence makes this a radically different India from the one I knew when I was the senior divisional economist for India, at the World Bank, in the mid-1970s.
The emergence of an elite consensus on where the country is going is clear to any regular visitor.
When entering the commerce ministry, bastion of opponents of open markets in the 1970s, I was struck by a poster describing India as the "world's largest free-market democracy".
Another feature is the belief that the pragmatism of India's policies, particularly over global finance and the balance of payments, had proved correct. Those in charge of a vast country with so many vulnerable people are rightly wary of making their economy hostage to the sociopathic tendencies of the financial sector.
Exhausted by the burden of its pretensions, the UK should soon offer its seat on the security council of the United Nations to its former colony. Its condition would be that France does the same in favour of the European Union. Whether or not such enlightened statesmanship is forthcoming (presumably not), we are moving into the age of continental superpowers. Asia will be home to not one, but two, of them.