7. Increase trade with neighbours

In the past decade or so, Indian trade with the rest of the world has ballooned. Lower tariff barriers encouraged by Indian authorities have been key, as has booming world trade.

This impressive development needs to be kept in perspective, however, as it has come from an exceptionally low base. India currently accounts for no more than 1.5% of global trade. India's trade with China is rising sharply, and China now ties with the US as India's biggest trading partner.

Ambitious goals are needed

India has announced ambitious goals for its international trade: it aims to reach 5% of world trade by 2020, and for exports to rise to $200bn by 2008/09 (around $155bn in the latest year).