Indian economy grew more in 15 years since 1991 than it grew from 1947 to 1991. What happened? In 1991, Indian government embraced with more warmth the free market principles and opened the economy a more than a little bit. While Indian leaders were very scared of foreign/weatern influence after WWII and independence in 1947, their adoption of socialist principles stagnated the economy and made it very hard for overpopulated nation to break free from the shackles of poverty and low growth rates. Free markets with ethics and discipline are the way to reengineer and improve any system.
I'm not an expert in this area but from limited research the Indian Government sets up one way trade streets. No foreign company can own controlling interest in an indian business or land. Multinationals must partner with a local Indian company to gain access and to get permission to do business a technology transfer is required. Rupees are a closed currency and not allowed to leave the country. The exchange rate is set by the RBI. Lots of corruption, payola and influence required to push forward. India has little value for their human resources. limited social programs... no min wage no protection.. Basically a fairly skilled workforce can be built cheap.. used and abused. Last 10 - 15 years growth is India Pimping their people. Average call center wage is 8000 INR / month. $200
Yup, you are no expert. Do more research and find out the details. Your points reflect more the environment of early 1990s not 2009. Rupee is free and floating for a decade now and companies have been very aggresively investing in India with controller shares. India has one of the most advanced derivatives market after the US. Corruption and slow work process still cripple the system but mostly in the government sector.
PLUS look at countries like Cuba or Eastern Europe/Russia/China/North Korea under communism, also usually managed/closed economies. Look what happened to China when they embraced capitalism and exporting.
Marc Faber stated in one of his latest interviews the Indian central bank was the only one he had any respect for. I wonder why. Surely they print just as the next central bank.
China, India, Japan are not free trade economies. They are each tightly controlled by their respective governments and institute policies that would be illegal in US.. ie. Anti-Trust / Price Fixing etc. They never make a deal unless its to their economic advantage... One way trade streets. Military spending for the US is greater than the next 20 countries combined. Unless we go out and pillage the countries we conquer in these wars exactly who is gaining the benefit from our tax payer expenditures? Who is ultimately paying the price for all this puffery? The US can not even self sustain at present time. My real point is we need to bring back core manufacturing and intellectual human resources here first to rebuild. Double digit unemployment is a huge obstacle to overcome.
Yes, YES! Most wars have historically been fought to gain economic rewards and advantage. The US has been stupid about it. We fight, die, and PAY FOR EVERYTHING... and get NOTHING material in return. Puffery... that's about it. (Actually the REAL reason we do it is because excessive deficit spending on "war and defense" is never challenged... and that spending always greases the GDP to make incumbent politicos look good at election time. Sick.. very sick.)
The high military spending means that we can project force anywhere in the world at anytime and no other country in the world can enforce its will against the US. This is extremely valuable for our economy, it ensures we can trade with the rest of world freely. Figure out why the US first created a Navy, it was not to start wars, it was to ensure our ability to trade with the rest of the world. We do not want any other country to rival us, the strength of the US Navy (and rest of the military) is the one of the most important aspects of our economy. .... Core manufacturing??? Look at Nike, their designing and marketing of their shoes/brand is done by people in the US, very high paying jobs done by very smart people. The making of the actual shoes and apparel is done by third world/developing countries, low wage mindless work. As the world opens more and more to free trade, the highly skilled people in highly skilled countries will make more and more, the low skilled people in low skilled countries will make more and more. The low skilled people in high skilled countries will either need to raise their skill level or move to India to make shoes. Its called "comparative advantage." I, for one, like sitting in an office figuring out how to do things better, make systems run more smoothly, make my product sell to more and more people. If you want to dig ditches or make shoes, you can move to India. 5yr
we are the most materialsit nation the world has even seen. india is not like that, they value spiritual wisdom much more than owning ipods, getting the next SUV etc