NEW YORK: Top intellectual leaders from India and the United States agreed that the potential for India was dramatic as the country heads towards 2050. The panelists were taking part in a discussion on 'India 2050: A Grand Strategy for India Rising' presented by Yale University and the Confederation of Indian Industry (CII) in New York City, Sept 24.

The panelists engaged in the lively debate moderated by Richard C. Levin, President of Yale University, included Thomas Friedman, author of 'The World is Flat'; Ramachandra Guha, historian and author of 'India after Gandhi:

The History of the World's Largest Democracy'; Nandan M. Nilekani, Co-Chairman of the Board, Infosys Technologies Ltd.; Roopa Purushothaman, Director, Future Capital Research; T.N. Srinivasan, Samuel C. Park, Jr, Professor of Economics, Yale University; and Ernesto Zedillo, Former President of Mexico and Director of the Yale Center for the Study of Globalization. N. Srinivasan, former Director General CII, presented the concluding remarks.Levin raised pertinent points about the challenges to India's growth and asked the panelists to comment.

The topic of the future of India aroused great optimism among the panelists who agreed that India's recent high growth trajectory amid a robust democratic system and tremendous diversity had belied all expectations.However, the country needs to address critical issues of poverty eradication, inequalities, social development, governance and environmental sustainability in order to achieve its potential. Asked to start the debate, Roopa Purushothaman, herself a Yale graduate, emphasized that India's rising consumer markets and demand for commodities would move global markets as the country became a large player in the global economy.

However, it would still be a couple of decades before the country could really take off.Nandan Nilekani pointed out that much has changed in India in the last few years. Space has been created for entrepreneurs to rise, technology has been used effectively to lead change, English as a language has helped in the success of outsourcing, the demographic dividend results in the world's largest pool of young people, and Indians have realized that globalization is an opportunity.

These factors set the stage for dramatic growth in coming years, stated Nilekani. Professor T.N. Srinivasan felt that poverty eradication remains the overarching objective and that the right institutions need to be established to make growth successful and sustainable. Quoting Jawahar Lal Nehru, India's first Prime Minister, he said that the founding fathers of India had a vision for political, social, and economic democracy. But some of the objectives had not been achieved.Former Mexican President Zedillo stated that India's growth potential could not be realized with a 'business as usual' approach under the present economic and social structure of the country.

He emphasized that the global economy has been favorable to India so far, but the cycle could change. India needs to address four areas of concern, namely regulation of markets, labor market regulation, infrastructure provision and strengthening human capital. Policymakers need to take aggressive steps for further reforms, he felt.Ramachandra Guha said that India's principal success has been its multicultural plural democracy in the long term, while the last ten years have seen entrepreneurial success. But there are serious threats to this democracy in the form of right-wing fundamentalism and left extremism.

Large sections of society have been left out of the growth process and this presents a growing threat. Environmental sustainability and corruption also endanger progress, he added.Veteran New York Times journalist Thomas Friedman stated that India with its large population and many ethnicities is a miracle to him. The system can find its own equilibrium and is an equilibrating force in the world today. He opined that in the increasingly flat world, imagination would be the driver of future progress and governments need to empower imagination.

India's diversity is a huge advantage, but liberal arts need to be revived to spark imagination. Finally, infrastructure matters as well.The discussion also touched on the differences between India and China. Friedman likened the two to highways, the Chinese highway fast, but facing a speed-bump of political reforms, which it may weather or not.