“India: Everything To Play For” is a report released by Lehman Brothers regarding the state of the Indian economy and what the future looks like.
- The Indian economy can grow by 10 percent a year over the next decade if it liberalises investment rules, deregulates labour markets and keeps government spending under control.
- Many characteristics shown by Asia’s third-largest economy were similar to those in other emerging Asian nations during their early stages of economic take-off. These included rising incomes, an increasingly open economy and stable macroeconomic conditions stimulating demand and investments.
- To lift growth to a higher level, reforms such as easing foreign direct investment rules and labour market deregulation, as well as fiscal consolidation and improved infrastructure, were needed.
- A sharp slowdown in the US has the potential to derail the Indian economy. If the US economic growth rate falls by 1 percentage point, there could be a severe impact on India’s growth rate.
All in all, a “must-read” for all interested in the Indian economy.