Growth rate vs GDP increase: Indian GDP can become 9 times its present value if it keeps on growing continuously at 10% for the next 23 years. The same period increases to 32 years with a drop of 3% in the annual growth rate.
In the light of these facts, the following need to be understood and addressed by India's planners and polity otherwise the Indian dream of becoming a world leader will perish sooner than later.
- Will this opportunity window be available to the country for such a long a period.
- Will developed nations continue to pass on low level manufacturing hubs to India as they did for Singapore, Taiwan, Malaysia, South Korea and lately China or their experiences with a big economy with potential to become an economic superpower will make them hesitant to make use of cheaper manufacturing base of India with potential similar to that of China. After all developed countries also wish to grow richer rather than stagnating at present levels of prosperity.
- Will India grow rich before getting old or grow old before getting rich.
- Does India expect that it will be offered status of an economic superpower on a platter.The offerings will come only in areas which give value addition to the earnings of the developed world in short term as well as help maintain their technology leadership in the longer run.