India: Stars Well Aligned, But...

Raghuram Rajan in a recent speech on India concludes after assesing multiple factors that the stars are well aligned for India to become a hub of globalization, but the country is still some distance from that goal. The vote of confidence that foreign investors are giving India should not induce complacency; they are betting on the potential, not the reality. It is up to India to realize that potential. The country could well become a global financial center, for example: it is in the perfect time zone and has the necessary information technology, communications, and financial skills. All that is missing is a more sound regulatory environment and the conditions needed for introducing capital account convertibility. The country could also become a center for higher education: it has the core human capital, both in India and dispersed around the world, and a history of tolerance for ideas. All that is needed is a more welcoming environment for foreign educational institutions, faculty, and students, as well as a greater tolerance for market-clearing fees and salaries. Tourism, health care—etc . The list may be long, but the point should be clear. If I may add, the country needs to think big, the vision should be long term, we should change what can be changed in the immediate context, all thinking citizens need to contribute at local levels towards imporvments, strengthen grass roots development - the macro level things are slowly gaining momentum. India's future is in Indian hands as Rajesh recently wrote in detail about and the future shall be clearly what Indians make of it - The window of opportunity may not be wide open for long - its a race against time -if the nation wins it - it will qualify to be one of history's massive transformation and move to prosperity perhaps unchallenged in its means and scale.