Gita Gopinath is first Indian origin professor of Economics at Harvard. I have given below her views about India’s growing economy.
She takes overview of Economic balance around the world and India’s position among other countries. Her optimistic views tell that India is one of the fastest growing countries and it is now under transformational phase. She predicts that around 1935, India would be holding largest labor market in the world. If we want to project continuous growth, this labor has to be converted into more and more skilled labor. This requires increased level of education. This is possible with increased spending on education, infrastructure improvement and at the root of better governance.
She says that India and China have economic control over the globe. India also has lot of internal restrictions over Indian business processes. It helps us to maintain the fluctuations and liquidity of market.
‘Business processes are evolved along with the need of developing market. China, Japan could able to develop their economy because; these could easily track the markets globally and understood what is required by the customers. Every company has tried to satisfy the growing need of comfort at their level best. This formed continue inflow of cash in their countries. When there is dependence over the products produced by such companies, it became difficult to replace them with other once.India has number of different measures of controlling capital inflow. These measures automatically reduce the exposure to global financial stocks. US economy is controlled by factors like Credit Default Swap, High Leverage etc. ‘