Monday, February 28, 2005

Elephant Racing Ahead!

Economy & Policy

Today has been budget day in New Delhi. Projected to be the world's larghest country in terms of population in a few decades, the economy of India has also benefited enormously from the liberal reforms of the last decade.

But more is needed, and the new Singh government want to increase the growth rate from the7 % of today towards a sustained growth around 10 %, which IMF and others conside perfectly possible given the right policies.

Todays budget brings a number of tax changes and opens up theecoomy further to foreign investment and trade. It looks good, and the Indian stock market accordingly soared after having seen the details.

I'm certain China takes note - and we should as well.