Pascal Nunes

Was thinking about the Indian economy. Yes I do think of many things these days. For those of you who hate economics, just leave this entry aside.

According to Bill Gates, in his book "The Road Ahead" , any industry goes through a positive spiral and a negetive spiral. This is what I understood about these spirals, People like a product, they buy it, manufacturer gets profit, invests in improving quality of product, product is better, more people buy it. This goes on, this is the positive spiral. Now about the negetive spiral, there is some fault in the product, people begin to switch over to other products, the quality of those products will improve, more people will switch over.

I think the Indian economy is in a positive spiral at present. A lot of foreign investment is coming into the country. This is making more people economically powerful. This is similar to the situation that created the middle class in the US during the 1920s. This generates more buyers. The more the number of buyers, the stronger is the economy. So what is happening here is resulting in a much stronger economy. These buyers and their transactional power is only posed to increase (or so most news these days makes me believe).

So long as people find work and contribute to the betterment of society, any economy would be strong. It need not depend on foreign capital, it is just a matter of identifying a unfulfilled need in society and capitalising on it. That is not as difficult as it sounds. Many people come into Mumbai every day seeking a job. Many start their own businesses. It is not that this could not be done from where they came, but Mumbai has the money to start the process. With capital flowing into the country this chain is bound to start in other places too.

That is why I would say "India Shining"