InvestorQ : What can go wrong for India as it looks to become among the top 3 economies in the world?
sarah Leo made post

What can go wrong for India as it looks to become among the top 3 economies in the world?

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Rashi Mehra answered.
2 weeks ago
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The biggest risk is that India could turns too inward looking in policy. The entire world is becoming inward looking. The second risk is that the demographic dividend instead becomes a demographic headache without enough jobs. Thirdly, things can stall if the focus is still too much on low end products and services.

Let me conclude on an optimistic note. For India to be able to reach that level as projected by Morgan Stanley, it has to get 3 things in place. Firstly, to begin with, global companies will gradually shift away from China towards India to meet outsourcing needs. That is already happening.

Secondly, India’s GDP per capita has to keep pace if growth has to translate into purchasing power. Finally, India still needs to get its infrastructure jigsaw puzzle resolved. If India can take care of these 3 things, then what Morgan Stanley is predicting is not entirely infeasible. 

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