ASIA 7 DAYS

Topics of the Week:

Feb. 12, Sun. 14:10 - 14:40 (UTC) etc.

India: Growing Pains
India's economy is showing signs of slowing down. The flood of foreign capital into the country has reversed direction following the credit crisis in Europe. The value of the rupee has weakened. Now, the growth forecast for fiscal 2011 has been revised downward from 7.5 to 6.7 percent.

Sub-7 percent GDP is not what the world expects from the dynamo of South Asia. India and China have been the driving force for a global economy hobbled by years of recession.

Big powers have been lining up to do business in the market of one-point-two billion people. Two years ago, a procession of leaders from the United States, Britain, France, China and Russia visited New Delhi to reinforce economic ties.

After a slow start, Japan is also taking action. An economic partnership agreement took effect last August. At the end of last year, Prime Minister Yoshihiko Noda met with India's Prime Minister Manmohan Singh. Two Japanese ministers have followed on separate trips to New Delhi. And Japanese companies are setting up or expanding operations in the country.

Even so, the recent slowdown has been a wake-up call. The government launches another five-year program in fiscal 2012, setting a target of 9 percent growth.
One key to achieving that is to expand domestic demand.

Up until now, growth was fueled by a growing middle class. Now, companies are expanding their attention to the lower income brackets, offering more affordable products. The government and an institute of technology are jointly developing 45-dollar personal computers.

Cheap PCs will do more than expand demand. As an education tool, they can foster skilled workers, a valuable resource for long-term growth.

In this program, we interview corporate leaders and India's minister in charge of developing human resources. We will also examine New Delhi's new strategies for the economy, with input from an expert who has just returned from a research trip to the country.

In other news:
- Iran hit by new sanctions.
- Indonesia's economy picks up steam.