Global economic recession affected differently different countries, thus it influenced India in particular way. The crisis gives India an opportunity to re-examine its economic strategy. 

As Business Week says, the boom the country has experienced in IT and BPO (business process outsourcing) is driven by the low-cost labor, called labor arbitrage —not by a concerted effort of an Indian industry to innovate or to grow strengths like manufacturing capabilities. So software sector increase is not driven by innovation, it’s just the provision with cheap technical human resources.

But there is an obstruction as low-cost labor does not provide sustainable competitive advantage to the nation because it is always in a precarious position and in danger of being overtaken by another low-cost provider of human capital. So India has to choose whether it can learn and start the growth process or continue denying that it gets into stagnation. India has to understand what real competitiveness is for the country today in order to create conditions for sustainable wealth and prosperity for its citizens, the edition notes.

Anyway India will have to move ahead, wake up and take action if it is to continue the momentum it has earned in the last 10 years. In the future, it will have to focus more on manufacturing and innovation. These are the sectors that would provide employment and appropriate usage of the talent and educated people that are already available in the country.