In 2006, GDP increased by more than 8 percent, although slowed to 7.3 and 5.7 percent in 2008 and 2009, respectively. Growth is predicted to accelerate again in 2010 and 2011. With the disbandment of...

In 2006, GDP increased by more than 8 percent, although slowed to 7.3 and 5.7 percent in 2008 and 2009, respectively. Growth is predicted to accelerate again in 2010 and 2011. With the disbandment of the “License Raj,” a socialist inspired system that made government permits mandatory for almost every aspect of business, the climate for foreign investment has improved markedly. Coca-Cola was able to get permission for a 100-percent-owned unit in India in eight weeks, and Motorola received clearance in two days to add a new product line. Other companies that have reported rapid progress include DaimlerChrysler, Procter & Gamble, and Whirlpool.