Economic growth in India is still the envy of the world

Dizzying pace of India's growth has slowed, but not enough to cost the country the title of the world's fastest growing large economy. GDP growth fell to 7.1% in the last quarter.

The slowdown is due to economic reforms, leadership in the Central Bank, and intractable problems that politicians seem unable to subdue: corruption, bureaucracy and burdensome regulation. Economists have even questioned the validity of statistics, the GDP of the country, which differed from the other indicators.

Capital Economics economist Shilan Shah estimated that the increase was "almost certainly weaker" than indicate
official statistical data. Only 5.5% or 6% in the quarter. There are also fears that the reform drive, Prime Minister Narendra modi has stalled.

Modi has spent huge amounts of political capital to get his signature on items approved by lawmakers in August. When implemented, it can stimulate the economy by simplifying a Byzantine tax system.

But state elections will be held in 2017, analysts are concerned that other plans will be postponed. Proposals to liberalize labor markets and reform of the laws of land ownership in India, for example, is not currently discussed.

One of the priorities of the modi - reducing red tape for small business - almost not progressed. India occupies the 130th place in the world Bank index to measure the regulatory burden on small businesses. With 2015, the improvement was only 4% to the country's infrastructure is not enough and it will take decades to refresh the data.

The government is particularly proud of its efforts to increase foreign investment. Indeed, the campaign has paid dividends with investments from the United States, an increase of 500% in the last two years to $ 4.2 billion.

Despite the difficulties, India remains an attractive choice for multinational corporations. A growing middle class, the country has money to spend, and its young population has great potential.

The prospect of turning that potential into profit lured a parade of foreign top-managers in India: General Director of Microsoft (MSFT, Tech30), Google (GOOGL, Tech30) and Apple (AAPL, Tech30) all visited the country last year.

sections: Economics, World News