Reforms to lead India to pre-crisis growth rates by 2011, says economist

India is on course to return to pre-crisis growth rates of about 9 per cent from 2011, if key reforms continue, having emerged from the global economic crisis less scathed than most other nations.

According to a guest opinion article recently published by Standard & Poor's Ratings Services, Why India Will Continue To Gain Stature In The Global Economy.

"Though not insulated from the global crisis, India proved to be less vulnerable than many first anticipated," says Dharmakirti Joshi, principal economist of CRISIL Ltd.

Joshi said, "In contrast with advanced economies, its financial sector also stayed fairly healthy. This made the country's stimulus programme more effective than elsewhere and accelerated its recovery. As a result, we expect India to regain and sustain its pre-crisis GDP growth rates of about 9 per cent starting in 2011, provided it hastens policy reforms in areas such as taxation, education, and foreign investment regulations."

The article says that India's large, young, and growing population, the rising income of the middle class, and the country's high savings rate continue to support strong domestic demand, tempering the impact of weak export markets and other external stimuli.

CRISIL Ltd. therefore believes that the country therefore has a greater opportunity than advanced economies to address its constraints and create a prosperous "new normal" for its economy.