The Indian Giant Has Arrived

Mohamed A. El-Erian and Nobel-winner Michael Spence at Project Syndicate:

India’s recent economic success, solid momentum, and promising prospects are making the country ever more influential both regionally and internationally. But the experience of other countries – most notably China over the last three decades – suggests that such rapid influence and robust progress can be tricky to manage. After all, an action that makes sense domestically may conflict with what other countries expect from a systemically important economy. By the same token, actions that make sense internationally could complicate domestic economic progress.

Like China, India’s systemic importance has become apparent earlier in its growth and development process than was the case with other emerging economies, primarily because it boasts the world’s largest population (over 1.4 billion). Its growing presence is easy to detect.

More here.