A supply-side India

Significant economic reforms have helped India to become one of the fastest growing nations in the world. With a population of 1.4 billion people, India has a diverse economy with a growth outlook that overshadows most of its Asian peers. Economic liberalisation and rising incomes have stimulated India’s rapid growth in trade across the globe with foreign direct investment (FDI) increasing significantly, notably from the United States. India has become an attractive investment destination for capital seeking stable rates of return. India’s real GDP growth of 8% in 2023 surpassed China’s and all OECD countries. But economic success has not come easily, as the Indian government and its people have followed a long and difficult path. Between 1947 and 1991, India’s “Licence Raj” economy underperformed many of its Asian peers, including Pakistan. India’s steps towards economic reforms came following a balance of payments crisis in July 1991, during which its foreign exchange reserves collapsed.