India's growth surge reflects past change

India's economic growth mar-ches forward. A broad-based economic expansion has lifted the annual real GDP growth to a seemingly unprecedented 9%. This strong performance reflects the vigorous response of the country's private sector to gradual deregulation and liberalisation over the past decade. Although real GDP growth has achieved 9% per annum before, what is perhaps most positive this time is that robust exports and large private capital inflows have alleviated the balance of payments constraint that typically emerged in previous upswings. The acceleration in investment, consumption...