A 10-step programme for India’s economy

It’s fashionable to say the era of strong emerging-market growth is over. As the U.S. recovers, the global cost of capital will rise, holding back investment; against this background, avoiding the next crisis is the best that most emerging economies can do. If you take this view, India might seem a perfect example, with its widening current account deficit, heavy public borrowing, persistent inflation and weak currency. I don’t think so. As a general matter, emerging-market gloom is overdone. India, in particular, could teach the pessimists a lesson.

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