T he elephant dances. Whether measured in terms of trade as a share of gross domestic product, the number of companies seeking overseas listings and acquisitions, or the global ambitions of its resurgent manufacturers, it is clear that India, long overshadowed by China, is intertwining with the world as never before. India’s protracted coming-out party was the event no investor wanted to miss in 2006 and its integration with the global economy will continue in 2007.
At the heart of this trend is a fundamental reappraisal of the country’s economic potential after decades of miserly growth. Over the past three years, India’s gross domestic product has expanded by more than 8 per cent, making it the second fastest growing economy in the world. Between April and September 2006, growth accelerated to 9.1 per cent and the country’s Planning Commission believes this rate can be sustained during the next five year plan, covering 2007-2012.
