The Indian economy grew at a healthy rate of 7.6 per cent per year in 2006-7, and a question of this growth has been the degree to which the Indian Britishers impact by investing back into the Indian economy, has been beneficial.

Now, that brings India’s growth closer to China’s 10 percent pace, and one way in which it is being achieved is the Britisher influence and investment from Indians resident in the United Kingdom. The Indian economy is growing in some very high profile and high value areas these days as well as in the traditional commodities, and that is attracting wealthy ex patriot Indians to invest heavily back into their home country. There are now a lot of these people who have made good in the UK but now seek a more rapidly growing market in which to develop their businesses, and see India as the ideal place to do their business.

For example, advanced research in biotechnology and the drug industry is growing rapidly, and it is attracting UK money. And why shouldn’t it? The Indian economy is on a growth curve that comes close to matching the very best developing nation performances in the world. The current government has of course encouraged foreign investment across many nations and there is certainly a US effect similar to the Britisher effect, which is a significant change from the early ’90’s and has contributed to the strong growth in GDP, over the past several years.

The Indian economy is underdeveloped in the sense that her reserves of resources. That is land, labor and capital – are not fully and effectively employed. Labor force and employment data reveals that only about 39% of the on-reserve population of Labor force age is in the Labor force, compared to, for example, 65% of the non-Indian population of Canada.

The Indian economy is progressing very fast, and this is frankly also coupled by the fact that the Indian policies have been liberal towards the FDI.

It is wonderful now to think that the Indian economy is fourth largest in the world if the purchasing power is calculated, and India is the second fastest growing economy in the world.

Infrastructure development has lagged behind in terms of electricity, gas and water supply growth, which was only up by 5.6%. Indeed utilities output has only grown by an average of around 6% over the last accounting period recorded.

Infrastructure must be modernized with immediate effect. It has been promised that a powerful committee will be organized with scholars and professionals to look after the reforms required in the infrastructure of the country. However, infrastructure in the country which has been very poor for a long time, is improving. You see new big container ports in India, new airports coming into being, the beginning of a national highway system: the kinds of things to support real economic growth for a long time to come.

Two other sectors needing investment are the health and education sectors which cry out for attention, and as they do many Britishers will return to India. The output of these sectors has a direct impact on the wellbeing, capabilities and employability of individuals, who, under the right economic conditions, could earn the $ 40,000 a year, and that would spell the arrival of India in the global league table, able to recruit top professionals who have so often in the past been lost to the developed nations, which has in the past been another Britisher problem.

Watch out for sectors like telecom, capital goods, banking and real estate which are witnessing an exponential growth and are positioned to outperform and offer profitable opportunities for opportunistic British and US investors.

Furthermore, another investment area that has always close to the heart of every British person, but has fallen of at home, is now becoming highly attractive to the average Britisher investor, and that is real estate. The Indian real estate market is recommended for foreign opportunistic investors to enter primarily because of high levels of liquidity in demand and supply side, the regulatory policies favorable to investors, rising affordability and rapidly growing demand for modern, high quality property.

The British and US/Canada market for services in telephone centre provision and related services is also of great interest to the Britisher investor. Nandan Nilenkani, the Infosys chief, is reported in Business Week as speculating that just as China cut costs for global manufacturing, India will make similar savings for global services. Indeed, it may be inevitable. However, as a result of this success, the notion that the RBI can keep the rupee down may not amount in the long term to more than wishful thinking.

India’s domestic and foreign policy priorities are closely interlinked. The primary task of India’s foreign policy is to create an external environment conducive to its rapid development. India?s competitive advantage does not come from cost alone. As products life cycles and lead time for product developments shrink, Indian manufacturers have evolved from low tech to much more advanced offerings.

India too works on these to make a better economy and the ex patriot Britishers intelligence through his Indian family roots enables him to capitalize on these opportunities very easily. So, India stands as a vibrant and diverse country whose economy is increasingly integrating with the world economy. The sweeping economic reforms undertaken in the last decade have had far reaching consequences, and you could say that things are just starting to get really interesting for Britishers and their impact on the development of the Indian economy, which can only continue to grow.