The Indian Myth
OVER THE last two decades, numerous books, articles and press commentaries have hailed India as the next global power. This flush of enthusiasm results partly from the marked acceleration in India’s economic growth rate following reforms initiated in 1991. India’s gross domestic product (GDP) grew at 6 percent per year for most of the 1990s, 5.5 percent from 1998 to 2002, and soared to nearly 9 percent from 2003 to 2007, before settling at an average of 6.5 percent until 2012. The upswing offered a contrast to what the Indian economist Raj Krishna dubbed “the Hindu rate of growth”: an average of 2.5 percent for the first twenty-five years following India’s independence in 1947. The brisker pace pulled millions from poverty, put Indian companies (such as Indian Oil, Tata Motors, Tata Steel, Infosys, Mahindra, Reliance Industries and Wipro) even more prominently on the global map, and spawned giddy headlines about India’s prowess in IT, even though that sector accounts for a tiny proportion of the country’s output and workforce. India also beckoned as a market for exports and a site for foreign investment.