Wednesday, August 24, 2005

India's turn in the spotlight

It is always fascinating to notice how reading something makes you more aware of other articles on the same topic. Given that I recently finished ristening to Thomas Friedman's The World is Flat (which I HIGHLY recommend! One of best books I have read this year!) it should be of little surprise that yesterday I blogged an article on China and today it is India's turn.

In the past 24 hours I have received emails from both McKinsey Quarterly and Knowledge@Wharton that contained coverage on India. While neither is per se a finance piece, each publication has many ties to finance (venture capital, investments, international finance, free trade, globalization), but is largely aimed at a broader audience than just those interested in finance.

The very short version of the series of articles is that foreign investment in India is increasing but it is no where near the level of in China. Moreover, India is now creating more higher level skilled jobs and not just the data entry etc. jobs. This shift (which was widely expected) will most likely create a larger middle class and help the millions of poor get hope for the future and at least some economic foothold for the present.

Of course, this shift will not be well received by those who feel threatened by the changing business environment. So look out for more talk of protectionismcoming from the so-called developed world --especially in times of economic slowdown.

A few direct links:

Knowledge@Wharton's special section on India: What is Driving India's Rise in R&D
McKinsey Quarterly's interview with India's prime minister, Dr. Manmohan Singh.

One quote from the interview:

"Manmohan Singh: 'If I have any message, it is that it is our ambition to integrate our country into the evolving global economy. We accept the logic of globalization. We recognize that globalization offers us enormous opportunities in the race to leapfrog in development processes. It also obliges us to set in motion processes which would minimize its risks.

I think, overall, India is today on the move. The economic reforms that our salvation lies in —operating an open society, political system, an open economy, economic system--—this has widespread support.' "

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