Two steps forward ..

India Risk - Editor's letter

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India's economy is booming. Its real gross domestic product grew 8.1% in fiscal year 2007 following an increase of 9.2% the previous year and an average 8.2% between 2003 and 2005, according to Bank for International Settlements statistics. Meanwhile, the country's foreign exchange reserves swelled by $39.2 billion last year - a figure only surpassed by China and Japan in 2006 - to reach $170.2 billion by December 2006.

Such a rapid pace of development can only be maintained if a country's in

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