INDIA - The Next Superpower

A sound and transparent financial system, booming IT industry and a well-regulated stock market – India is surely poised to be the world’s next superpower. India has been active politically and economically in the past decade as well. How do the superpowers of the world view India? Is India the emerging superpower a threat to their supremacy?

India has found its place in various reports by global political analysts as the next superpower already! Due to its population, military might and economic development India seems to be on a fast track economic boom. So does the world’s existing superpower USA perceive India as a threat?

For now, the US stands to benefit from increased foreign investment in India as well as our well-educated young population. However India’s rising political, economic and military power will have profound implications on US foreign policy.

Obstacles hindering the rise of India as a superpower

• Widespread poverty: In a population of over 1 billion, about 25% live below the poverty line (Source: Planning Commission). Poverty in turn begets problems like child labor, unemployment, crime and health issues.

• Disorganization: Poor governance and varying state regulations also hinder growth and are a cause of worry. Poor infrastructure continues to act as a bottleneck for further economic development.

• Social divide and communal disputes: India is a diverse mix of religions, castes and communities, and is periodically afflicted by caste disputes and communal clashes. It would surely progress faster in a less caste-driven society.

Despite these seemingly insurmountable problems, India’s outlook appears good. In 10 years India’s economy would have overtaken Britain’s and by 2040 it would be the world’s third largest economy (Source: Goldman Sachs). Will it eventually overtake the world’s superpowers?

By many yardsticks India is on the fast track, and racing ahead. But is it early days yet for self-congratulation? Debt-related suicides, deaths due to starvation, illiteracy, increasing communal discord – when will we succeed in wiping out these ugly blots from the face of India? Or do they pale into insignificance compared to the rosy economic picture projected to the world?