The McKinsey's global institute has been studying the economic growth barriers of various countries for nearly a decade. They include Brazil, Germany, Sweden, Korea, and Australia. To this list it has now added the Indian economy. It claims that India Inc. can transform itself into a surging economy one with the right dose of reform.

The study concludes that the key to unlocking India's growth potential lies in its ability to deliver further reform in 13 key areas. The key driver of growth according to the report is higher productivity which in turn will happen if markets are allowed to operate freely. The study revealed three main barriers to faster growth: the multiplicity of regulations governing the product markets, distortions in the land markets and widespread government ownership of businesses.

The report strongly argues for removal of the three main barriers to growth with more accent on the removal of multiplicity of regulations governing product markets which it feels would lead India's economy to grow as fast as 10 percent a year in GDP terms. The fact of the matter is that there has never been a problem with the direction of reforms. The real problem has more to do with the pace and effective execution than anything else.

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