It's a miracle

Martin Feldstein, a Harvard professor of economics and a long-time India watcher is impressed with India’s growth story so far, with the GDP growing at 8-9% every year, but feels that there is a lesson to be learnt from the recent rise in inflation and rate of interest, that threatens to slow growth. “I’m very impressed with India,” Feldstein said. “Despite so many institutional flaws, like terrible infrastructure, terrible primary and secondary education system, the GDP is growing at 9% annually, there is a variety of industries, so many entrepreneurs… it’s a miracle,” he said. Feldstein was in Mumbai to address a select gathering at Canara Robeco Mutual Fund’s Thought Leadership Series of lectures. The Harvard professor, who is also an advisor to the Dutch asset management major Robeco, also looks at India as an investment destination very favourably. When international investors ask him where to invest around the world, he points them to India as one of those which they can look at, he said. Interestingly, Feldstein feels that India is more closed than China because things move at a much faster rate in China than they do in India. “China is much more open than India,” he said. Feldstein feels China has done an ‘incredible job’ of growing the economy over the last 30 years, and India has a lot of catching up to do.