India is now heading down the trail of dynamic growth blazed by China. The prospect of India correspondingly increasing its already major impact on the world economy hinges on a fine balance of strengths and weaknesses in the country's political economy. More 

Strategic question: Will domestic and foreign security concerns affect the investment environment?

Short-term questions: How are relations with China and Pakistan improving? Will armed ethnic and leftist movements distract policymakers from other priorities?

Strategic questions: Does politics hurt growth and investment? How can the government improve the delivery of public services?

Short-term questions: How do coalitions affect policy-making? How is the balance of power changing between national and regional parties? Does the current government have the will and ability to make promised improvements in administration?

Strategic question: Will the Indian economy continue to expand at a rapid clip or will uneven development become a stumbling block?

Short-term question: Are India’s political dynamics conducive to major structural reforms that are necessary to enable sustainable and higher growth?

Strategic question: Can agricultural growth be accelerated so that the benefits of economic growth spread to rural India?

Short-term questions: Will the government have the will or strength to push ahead with efforts to liberalise agriculture and reform rural markets? How are the links between agriculture and industry evolving?

Strategic question: How far will India integrate with the world economy?

Short term questions: How will politics affect exchange rate policy? Will India facilitate or impede global trade liberalisation? What is the future of the outsourcing industry?