PORTFOLIO.COM: What does a young, vibrant population in India mean in terms of the economy?

RATAN TATA: A young, vibrant population provides favorable demographics that are an opportunity for India -- due to the potential of a large workforce, greater savings and investment leading to rapid economic growth. I say "opportunity" because these outcomes are not assured but will need coordinated efforts from the Government and industry to tap into the young population's potential. Tapping into this potential requires major investments in education at all levels from primary to technical and post graduate. It also needs better infrastructure -- both urban and rural. Lastly, we need to remove bureaucracy and red tape so that there is much greater investment in manufacturing and services that can productively employ the large increases in workforce that are anticipated.

PORTFOLIO.COM: How can India make growth all-inclusive?

RATAN TATA: Growth can be made all-inclusive by providing opportunity to all. By "opportunity" I mean that we need to ensure that we make education and basic infrastructure available to all -- especially to the economically weaker sections, remote and rural areas and women.

PORTFOLIO.COM: What role do you see community organizations play in India's sustainable development, especially when it comes to women and children?

RATAN TATA: Community organizations can perform a range of functions -- from monitoring government programs relating to literacy, health, malnutrition, etc., to preventing exploitation of child labor or women.

PORTFOLIO.COM: Is India a better place to do business than China?

RATAN TATA: The Tata Group does not have a major presence in China as yet so it would be hard for me to compare the two countries' on specifics. Broadly, I feel that China is more open and easy to invest in, whereas India is more fulfilling and rewarding in terms of returns, once investments have been made.

PORTFOLIO.COM: Can the government, the private sector, and nongovernmental organizations work together for their mutual benefit?

RATAN TATA: I certainly think they should. The fact that they do not is one of the key reasons for many large and economically important projects being delayed. India's ability to grow rapidly is being impaired by projects getting stalled or delayed due to disputes over land, rehabilitation and resettlement and compensation claims. Of course, there are sometimes vested interests at work that want to ensure that some projects get delayed.

I also feel that there should be less suspicion from the Government towards the private sector, as this leads to the private sector and the Government not maximizing the synergies of working together.

PORTFOLIO.COM: How is the ethos of Indian society different that enables it to be so flexible and accommodating to business?

RATAN TATA: Indian society is intrinsically pluralist and perhaps that is what makes it flexible and accommodating. However, that does not necessarily make for a good place to do business, as there are other factors that are important for investment and business -- such as predictable and consistent policies and some of the other items I have mentioned earlier like infrastructure, and less red tape.