Photo: The “Forum Mall” in the city quarter Koramangala in the South of Bangalore: Wherever gigantic office complexes are developed, retail and residential projects usually appear shortly thereafter.

Since the start of the economic reforms in the early 1990s, India’s economy has been growing at an impressive six percent per annum, a rate that has accelerated to eight percent during the last three years. As of today, India is the 11th largest economy in the world. Goldman Sachs expects the total GDP of Brazil, Russia, India and China (BRICs) to exceed the GDP of today’s G8 Countries in about 35 years. This implies a major shift in global economy and most of us will witness it during our professional life.

It is almost fair to say that — if the 19th century belonged to Europe and the 20th to the US — the 21st century will be the century of Asia. And Asia will be dominated by China and India — if for nothing else than for sheer size: India has approximately 1.2 billion inhabitants, at present only exceeded by China. 75 percent of all Indians are younger than 40 years. India’s middle-class comprises about 300 million people, more than the total population of the United States. That said and taking into account that India’s rich are among the richest in the world, it still leaves the country with more than 250 million people living below the poverty line.

Goal: more than ten percent growth
India is the world’s largest democracy. Its public systems (legislative, executive and courts) are based upon the British model — the bureaucracy included. India’s government is determined to continue the course of economic growth and supports it politically wherever possible. India is a proud nation, however, it is not too proud to ask the best in the world for advice. Well versed in the challenges ahead, the Indian government is looking for best global practice and invites the respective experts to help improve India. The Prime Minister Dr. Manmohan Singh has even consulted George Soros — among others — about what India can do to reach an annual GDP growth of ten percent. To continue and even accelerate the remarkable growth of the Indian economy, and at the same time to distribute its effects more equally among India’s population, is the Governments main objective for the next five years. To reach that goal, one of the biggest challenges is the improvement of India’s poor to mediocre infrastructure.