Caps, I am not trying to argue with McKinsey's prediction nor i differ with most of what you said, however, i wanted to keep general readers here aware of some of the issues, challenges and priorities that india have to go through before they come close to what these predictions say. in other words, your article is pointing out the rosy result (economic boom) and i am trying to project the changes at status quo that india have to undergo before they can see that result coming through. and all in all, i don't see it as a piece of cake :P on that note, let me point out some of the things that are needed to be done as far as materializing the economic prediction is concerned. 1) check the growth of population. looking at what china did to revolutionize and move the country from agriculture base to industry base, india need more time and labor than china for the same. let's look at the per capita income for indians -- it's still very poor in spite of all the hoopla about economic boom! 2) allow foreign investments in more areas, not just in computer/telecom related fields and for that simplify the process for entering into business. this is very important as per foreign investment is concerned. bureaucracy needs to be reformed along with social reformation. 3) boost agricultural growth through diversification and development of agro-processing. agriculture should be made profitable. i am saying this, because a complete transition from agriculture to industry is not easy for a huge and densely populated country like india which has abundant rural regions. 5) develop world-class infrastructure. expand industry fast enough to integrate not only the surplus labor in agriculture but also the unprecedented number of women and teenagers joining the labor force every year in india. 6) lastly but most importantly, imparting education and providing quality health care to the people. there is a HUGE difference in that between rural and urban india. need to reduce the gap. phew! i am being a bit optimistic for india here, to say the least :P