India’s growth model gives grounds for concern

India’s growth model gives grounds for concern at two levels: It is unbalanced insofar as savings are chronically insufficient to finance investments. In an equivalent manner, industrial production is insufficient to meet demand. The resulting external deficit repeatedly leads to currency crises; I t is based on massive use of fossil energies (especially coal) and therefore makes a significant contribut ion to the growth in global CO 2 emissions. India is therefore faced with two additional challenges: saving more and invest ing even more in renewable energies, which come on top of the other well-known challenges (education, infrastructure).