Three big challenges facing India

I think it is fair to say that we are entering one of the most critical periods in India's history.

The next ten years will determine whether we will take our place amongst the group of nations like South Korea and Taiwan that have made their way from poverty to moderate prosperity in a couple of generations, or whether the last few years have flattered only to deceive - whether the tremendous Indian growth of the last five years, following on the growth acceleration starting in the 1980s, is simply a growth spurt whose underpinnings are unsustainable.

History should warn us against hubris - others have grown rapidly before, only to be overcome by problems that were papered over during the period of growth.

In the eight years after 1967, Brazil grew at nearly 8% in real terms on average. Unfortunately, this was followed by decades of crisis and military rule that it only recently has recovered from.

Hubris defined in the dictionary as 'excessive pride or confidence' is a new concern.

For much of our post-independence past, we have been under-confident.

It is our successes (economic and otherwise) which are responsible for our pride.

But while believing one can be second-to-none is a spur to action and achievement, believing one is already second-to-none, or worse, better than everyone else, is, you will agree, dangerous.

Image: The world might may be keen on wooing India. But we must avoid getting carried away.

AP Images

Full Coverage: Budget 2011