World Bank Concerned Over India’s Economic Growth

World headlines celebrate India as a globalization success story, but the nation’s rapid growth could invite more headaches than benefits. The problem with India’s growth is its narrow focus, reports economist Priya Basu. A large part of the country’s GDP centers on information technology and software, while manufacturing and agriculture lag. Inadequate infrastructure also poses a challenge, with investors stymied by bureaucracy combined with a lack of clear policies or regulatory frameworks. World Bank studies note that prospective investors must wait up to five years to win government approval for infrastructure projects like power, and industry-government partnerships have become more talk than action. Various states in India report growing inequality and crime. Dr. Basu calls for agricultural and labor reforms as well as innovative development of new industries, including tourism. – YaleGlobal