India becoming 3rd largest economy in the world this year? I thought it was a decade away…does this make sense?
India is expected to become the world’s third largest economy this year after the United States and China, a leading economist in the US said on Tuesday.
Dr William T Wilson, chief economist for Keystone India, a Chicago-based firm providing cross-border trade facilitation and asset management services in the US and India, said after significant accelerations in economic growth recently, India’s economy is expected to equal or surpass Japan as the world’s third largest sometime in 2006.
“The results of liberalising strategic sectors such as telecom, banking, aviation and real estate are now beginning to show,” Wilson, a former chief economist for Ernst & Young, said.
Wilson said India’s economy measured in PPP (purchasing power parity) terms will eclipse the $4 trillion mark in 2006, making it equal to or greater than Japan’s.
Wilson noted that after growing at 8.5 per cent and 6.9 per cent in 2003 and 2004 respectively, India’s economy is expected to grow 7.8 per cent in 2005-2006 and then decelerate modestly to seven per cent in 2006-2007.
“Depending upon the direction of energy prices, inflation is expected to run between 5 and 5.5 per cent range in 2006.”
Wilson, however, acknowledged that a number of hurdles lie ahead for the Indian economy, including higher energy prices and heavy dependence on petroleum imports.
As a matter of fact in 2005 India was 12th largest Economy, I am not sure it will be 3rd this year or not, but we'll see. Though being Pakistani we want to see Pakistan up in the list too but Pakistan is 63rd largest Economy (the list includes some big corporates too, e.g Walmart is around 20th or around that number, so its not only countries but big corporates too).
Oh don’t worry. Microsoft is hiring one person from Pakistan very soon. That should atleast give the economy a little push. Today they are hiring one, tomorrow it will be 2, and in no time they wil have hired atleast 10 people. Quite an accomplishment if you ask me.
You would know what indians did with NORTEL, I doubt pakistanis will help pushing MS Economy much. Rather they will try to milk MS like Indians did with NORTEL.
India: the choice for global investors
China žs one thing, but don’t forget India, whose contingent here in Davos dwarfs the Chinese presence and is not afraid to champion India’s supposed advantages over China as a destination for global capital, not just in the hi-tech industries - China will do the hardware, and India the software, runs the cliché - but in the manufacturing and knowledge-based industries alike.
One of the many advertisements trumpeting India’s attractions which bedeck the town reads: “India, the preferred democracy for global investors.” If that’s not a side swipe at China, I don’t know what is. Many investors will find it hard to disagree. India’s got its drawbacks in overbearing bureaucracy, still high levels of corruption, and generally poor levels of universal education, but the cultural and linguistic affinity is much higher, and India shares many of the same traditions as the West - a similar business culture, a belief in the rule of laws, and a respect for intellectual property rights which seems to be virtually non-existent in China.
"India shares many of the same traditions as the West - a similar business culture, a belief in the rule of laws, and a respect for intellectual property rights which seems to be virtually non-existent in China."
Some Indian firms like ONGC and Reliance have market capital more then 42bil $ and 26 bil $ in 2005 and both of them is growing @23% and above.It means with in next 4 years combined market cap of these firms would exceed total GDP of Pakistan in 2010.
Source: http://www.rediff.com/money/2006/jan/25firm.htm
Travelers are coming in record numbers to the world’s largest democracy, which is in the throes of an economic transition. But it isn’t just the tourist industry that’s being reshaped. The list of must-see places is evolving, too – underscoring the speed of India’s transformation.
It is a form of motivation. I recall hearing a thousand times about the Japanese work ethic, the American straight-forwardness in expression, the British stiff upper lip...just to name a few. This at a time when the Indian students went on strike on the slightest pretext, the workers had no career and were lazy, Indian punctuality was not even a derision. From there to the current state where atleast a significant middleclass population is getting recognized for quality, innovation and value .... is quite a change. The Davos PR theme "come to the largest democracy to invest" has been quite a draw amongs investors.
Point being - at least my intent in posting about India is not to rub you or any Pak citizen the wrong way. It's partly my wanting to share my pride. Why not take it as a motivation or just ignore it?