Lexington, KY - Americans are not generally familiar with the world's largest democracy and that fact is a problem, according to author Vinay Rai.
In his newest book, written with William L. Simon, Rai suggests that when asked about India, most Americans answer in one of three ways. First, they might describe an overpopulated country crowded with the poor. Or they might give some vague information about Jungle Book characters or the Taj Mahal. Finally, they may tell about an American company that relocated departments - particularly call centers - to India.
The fact that many American businesspeople are not familiar with India's rapidly growing economy is even more problematic. With an economy currently growing at eight percent a year, even during the global recession, India is rapidly throwing off the myth of a mystical, poverty-stricken land in a remote corner of the globe.
With 1.1 billion residents and the fastest growing free market economy in the world, India has transformed itself and will further transform the world, the author insists. India's gross domestic product (GDP) currently has the highest growth rate in the world after China. Within 15 years, it is predicted to become the world's number three economic power.
According to a report by Goldman Sachs, India will surpass the GDP of the United States by 2050.
This growth is being fueled by the country's youth - set to become the world's largest population of young people. With purchasing power and salaries much greater than their contemporaries in China, this group will become the largest group of potential customers in the world.
India is already a medical and pharmaceutical powerhouse, a world-manufacturing center, and a noted R&D source for IT. More recently, it has become known for fashion and film, including the worldwide success of movies such as Slum Dog Millionaire. Contemporary literature is also flourishing, with many internationally renowned Indian authors.
Should American businesses be concerned? According to Rai, India is less of a threat than a provider of remarkable opportunities. Americans should not see India as a place to which they are losing jobs, he says, but as a vital partner in creating a new world economy.
India, the author argues, shares more qualities with America than any other nation on earth. Both countries honor individual enterprise, freedom of expression, multiculturalism and free market. Americans, he suggests, are unbeatable entrepreneurs and wealth creators - so are the new young Indians.
India shares converging interests with the United States more than with China, Russia or the European Union. The strategic partnership between the two countries will help fight terrorism, counter expansionistic goals of China, and enable capital and technology to flow freely.
The author believes that China will inevitably threaten America's strategic interests in Asia and that the ties between the United States and India will become even more important.
India has many obstacles to deal with if it is to become the substantial economic and political force that Rai envisions. While he applauds what he calls "the Indian Advantage" over other countries, particularly China, the author is aware of the challenges. They are as complex as the country itself, including over a dozen official languages, the vestiges of a caste system and years of colonial rule, and the ever-present twins of population and poverty.
Other problems involve infrastructure, including basic water, health and food. Education and the role of women are both undergoing a transformation in India that will make changes not only in Indian society, but in business as well.
Rai is an unabashed cheerleader for India. As an entrepreneur and businessperson, in 1999 he was listed as one of the five wealthiest people in India and among the 200 richest in the world. He has also been active in promoting reform, particularly in education in his country.
Some of his activities have not been without controversy, but there can be little doubt of his enthusiasm for the future he sees for India. Think India is a good introductory read in understanding how that future could affect America and the world.