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India needs to import more capital and export fewer workers
Despite strong headline growth numbers, the country is slipping from the global spotlight.
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India needs to switch gears on the economic front to attract more foreign capital needed for growth, says the writer.
PHOTO: AFP
Ruchir Sharma
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India is still reporting world-beating economic growth, but no longer getting any love for it. Flows of foreign money into the country have dried up, suggesting outsiders believe that the reported gross domestic product growth rate of over 8 per cent masks underlying weaknesses.
Most strikingly, corporate revenue normally grows (or shrinks) with the economy – in any country. But last year, corporate revenue growth for listed companies in India decelerated to barely half the GDP growth rate.
