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Competitiveness: Catching the next wave India

November 2014

Contents

Executive summary Introduction Macroeconomic and policy outlook A look back: growth unlike others Inherent strengths that will unlock India’s potential Catching the next wave Future growth sectors Infrastructure and construction Banking, financial services, and insurance (BFSI) Wholesale and retail Automobile manufacturing Pharmaceuticals Information and communications technology Policy challenges and opportunities Skills and talent development Trade/business process facilitation Energy and infrastructure Conclusion Appendix

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Executive summary

Introduction

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ndia’s economy never fails to surprise. On the one hand the economy promises enormous long-term advantages, such as a young demographic base, growing incomes, an expanding (and globalized) middle class, an educated workforce, and a stable democracy. In theory, these factors are enough to propel the country to the league of major economic powers. On the other hand, India arguably has not realized its full potential in the past few years with the economy strained by structural inadequacies and a general lack of consensus in policy making.

In such a scenario, it is interesting to analyze where India’s economy stands today and what are the alternatives for policymakers. With a new government, policy decisions and choices will determine the nature, pace, and success of economic growth in the country this decade and the next. This report examines in detail India’s economic strengths, key growth drivers, challenges, policy debates, and myriad economic facets. Competitiveness: Catching the next wave in India, a new report by Deloitte Touche Tohmatsu Limited, aims to highlight those industries that will help power the country’s next wave of sustainable growth. These sectors include infrastructure and construction; banking, financial services and insurance (BFSI);...