The redoubtable Economist (June 3rd – 9th, 2006), in a special report on Indian business, asks the provocative question: “Can India fly?”. The answer is that it has taken off; but its people could fly much higher without the fetters imposed by poor policies and incompetent government. Most objective observers share this cautious optimism.
The policy issues are mired in politics and populism. But Indian entrepreneurs and workers have a way of boosting production and productivity despite policy errors. The real problem areas are infrastructure, education and healthcare.