Indian Economy - Rajan clarifies

Rajan - Governor of Reserve Bank of India

Although I didn't have access to the numbers such as GDP/Debt, GDP/external debt of India or didnt look for it, I've always believed what Rajan outlines very clearly in the video below. How and why do I believe - a country of 1.3 billion, with the highest percentage of youth population in the world and a vibrant domestic economy, cannot but have a sustainable development if not for some blunt missteps. And, I haven't seen anything that I would think as "Major" blunt missteps by Indian government. 

India and it's companies can make a "world" of profit if they can target just the indian market alone (much of the world wants to come in and asks for cheaper access to markets but will not invest in infrastructure for that cheaper access - c'mon big box retailers? ) and not worry about any other market. Of-course, there are problems of graft, inefficient bureaucracy and lack of clarity in industrial sector's policies - these issues are prevalent in most economies, the question is of the scale of it. And, laws such as RTI, Lok Pal (weak or not weak) and recent scam revelations will, I hope, deter people from raping countries wealth any further. Again, all these doesn't take away the fundamentals that support a strong sustainable growth for India. 

And, I'm glad about the changes mentioned by Rajan in the video below - a shift from consumption based economy to Investment/infrastructure based economy. The changes along with few unfortunate missteps by govt, will slow us down, but also sets us for a higher future growth that can be sustained and weather any economical storm. Hello, we weathered through the 2008 financial crisis not coz of super management or tax concession or govt funded buyout, but coz of regulation that are well thought out long time ago. I hope this wisdom of being a touch too conservative and stronger in regulation continues than pay for the missteps of companies/corporations later. I also support Indian government for not doing much 'further' help to Kingfisher airlines and let it go through the motions - it's a badly run company and should face consequences. And, airline industry is showing signs of being vibrant with Tata-Airasia deal, Tata-Singapore airlines deal and Jet-Ethihad deal.

India has "PR" problem - not an "unmanageable" financial problem