During the colonial period, the economy grew at 1 per cent and population also at 1 per cent.From 1950, the economic growth was 3.5 per cent and population growth was 2.2 per cent. The economic growth picked up in the 1980s and the last five years had been the golden age of India’s economic history.
Now, population growth was also coming down and was likely to be 1.5 per cent. India had taken off on the basis of its domestic market. India was expected to have a big consumption demand.India had high technology, capital-intensive, knowledge industry. With these advantages, it was expected to recover faster than rest of the world, he said.Success
The State was mainly the reason for China’s success. In India, its success was because of the entrepreneurs, including the large number of small-scale entrepreneurs. India had a vibrant private space and major credit outflow was to the private sector. It also had aspiring youngsters.
Better governance was needed in areas such as education and healthcare, he said.