Column

The Spectator

Over the weekend I travelled to Alibag where a friend had bought a house by the beach to which he said would ultimately retire, once he had stopped working.

“The thing about the new economy is that there is no shortage of capital, India seems to be the first destination for international investment. With reform foreign investors know that we are risk- aversive and that there will be accountability on debt and repayment. This means that the job situation is excellent and that competition has secured employment in key sectors.”

Yes, I said as I kicked off my shoes and made myself comfortable on a planter’s chair and stared at the beach.

“And this business of overheating—it’s all par for the course. When you rise from 6-6.5% growth to 8.9, even if you start from 55% capacity, in three years you will be operating at 95%, so there is a supply constraint.”

True, I said, as I watched a koel pecking at a fallen guava, before spreading its wings and gliding up in to the sky.

“We must not forget we have a large skill advantage and a larger market. There is opportunity for all and we have English as our advantage. The Chinese work force will take years to catch up. The global advantage of India is not to be sneezed at!”

No, of course not, I said as I opened a pint of Kingfisher beer and drank it straight from the bottle. “Of course there are few constraints, as the whole confidence game has changed in our favour, and we have become competitive. The globe has become our area of operation, we have become externally viable. Nandan was so right when he said the world is flat. It’s now an even playing field. No one can right us off now!”

No of course not, I said as I finished the beer and speared a piece of locally caught squid- lightly sautéed in butter and garlic.

“The middle class, of course, is our best-kept secret. With its spending power, aspirational ambitions and exposure, it is a work force and a market for the world’s goods. We are forging ahead in sectors like IT and soon infrastructure will be up and running.”

Sure, I said as I traced the pattern of a sunbeam falling on a bougainvillea tree.

“You see privatisation and liberalisation have unshackled our coffers and now with the complete rupee convertibility, Indians can invest in whatsoever they desire with no red tape. The era of the babus is over!”

Great, I said, before I stretched out and prepared myself for a siesta under the sun. So when do you think you will retire and move in here?

“Retire? Who said anything about retiring? The way the economy is headed, I don’t think I will retire for another 20 years!” said my friend.

s_malavika@dnaindia.net