The current account deficit faces structural widening
India’s long-term objective is to develop its physical infrastructure and human capital to sustain GDP growth rates in excess of 8-9 per cent in the coming decade. The challenge is to balance growth and equality considerations in a society in which the “have-nots” in fact possess both political and extra-constitutional tools (e.g. Maoism) to oppose policies that hurt them. By focussing on infrastructure, education and the quality of governance our research gives investors insights into the longer-term growth prospects of this large and complex society. Besides powerful growth drivers such as demography, consumption and growing rural prosperity – which our coverage has and will continue to address – we also focus directly on the risk that faltering political will or price distortions in energy and electricity will derail progress in important sectors. Our analysis sheds light on previously lagging sectors like agriculture in which there are important pockets of dynamism and whose acceleration is necessary for the entire economy to progress.
