In the aftermath of the global financial crisis, optimists hoped that the BRIC (Brazil, Russia, India, China) would drive the global economic engine. But China's economic growth has slowed to its lowest rate in three years. Brazil's economic growth has fallen from around 7.5% to under 3%. Russia's economy is heavily dependent on oil and energy prices. India also has stalled. This three-part paper titled The Great Pretender - India's Economic Past and Future by world-renowned author and financial expert Satyajit Das looks at the development and future trajectory of the "I" in the "BRIC". The first part looked at why India's bad luck may just be beginning, while the second part, looked at India's current problems. This, the final part, looks at the India's inability to confront its current problems…
India's growth has slowed to around 6%, high by the standards of developed countries but well below the levels required to maintain economic momentum and improve the living standards of its citizens.
The demographics of a youthful population, the large domestic demand base and the high savings rate all remain positive.
But increasingly, corruption and political atrophy threaten to overwhelm its future prospects.
Image: Sajja Murli Chaudhary, a telecom employee, displays an Indian currency note as he takes part in a silent protest against the telecom corruption scandal in New Delhi.
Copyright: 2012 Satyajit Das All Rights Reserved.