I come from TN in India where it is an open secret that the politicians, their thugs and benamis [proxy] own a large chunk of the economy. Nepotism had become t

I come from TN in India where it is an open secret that the politicians, their thugs and benamis [proxy] own a large chunk of the economy. Nepotism had become the norm. Indian industries have also woefully lagged behind China in technology and sophistication. And even new entrants like Vietnam & Bangladesh pushed on by their export oriented economy have surged ahead. The changes made since the new government took to power has shaken up this. The backbone of the old network of big wigs thriving on subsidies and crony capitalism has been broken. This is both a short term pain and a great opportunity to fill the void with more advanced industries. There is no fundamental reason India can not aim for 10+% growth rate, given its young population and the fact that it has a lot of productivity growth to catch up with. My own prognosis is that even with a global recession, this might be a temporary realignment of industries. Unlike many other commenters here, maintaining "Status quo" is not in India's best interests.