India’s Rising Growth Potential - Goldman Sachs
India’s Rising Growth Potential
- India’s high growth rate since 2003 represents a structural increase rather than simply a cyclical upturn. We project India’s potential or sustainable growth rate at about 8% until 2020.
- The recent growth spurt was achieved primarily through a surge in productivity, which we believe can be sustained.
- India is well-positioned to reap the benefits of favorable demographics, including an ‘urbanization bonus’, and a further rise in capital accumulation, in part from an upsurge in foreign direct investment.
- The risks to growth are: political risk, including a rise in protectionism; supply-side constraints, including business climate, education, and labor market reforms; and environmental degradation.
- Our assessment suggests that India’s influence on the world economy will be bigger and quicker than implied in our previously published BRICs research.
- Click here to download the report.
Source: Global Economics Paper No: 152 published by Economic Research from the GS Institutional Portal
More about BRICs by Goldman Sachs:
- The BRICs Dream: Web Tour - Report published in 2006
- Dreaming with BRICs: The Path to 2050 - Report published in 2003
Other Information on BRICs:
- BRIC – The Major Issues - Danske Bank (2006)
- The BRIC countries - National Bank of Denmark (2006)
- A pile of BRICs or Asian CHIKS? - Stratton Street Capital LLP. (2006)
