As the world economy – indeed the world – is going to look like after the financial crisis? This will prove to be a mere change or something more fundamental?

Much of the answer is provided by the performance of the two Asian giants, China and India. So right or wrong, it is widely accepted that China will continue growing very rapidly. But what is the likely future for India?

Since 1980, the average standard of living of Chinese and Indian experience, for the first time in the history of these two ancient civilizations, a rapid and sustained growth.

The recent past offers at least four additional reasons for optimism: the growth rate is accelerating, higher savings and investment that highly support this acceleration, globalized economy of India and finally, the democratic political system, despite all its problems, it works.

What needs to happen for the Indians to enjoy a rich lifestyle? The answer, the report suggests, is that India should sustain a growth around 10% a year for a generation.

To make this possible, at least four things would happen: the world need to remain in peace, the world economy needs to remain open, India should avoid the stagnation in which many middle-income countries fell, and finally, the environmental implications and resources of its rise to wealth should be managed.

Via Financial Times.