Arvind Subramanian is pessimistic about Indian growth prospects

“The Indian state is increasingly unable to provide a range of basic services: health, education, physical security, rule of law, water and sanitation. The writ of the Indian state, for example, covers only about 80% of India, with the tribal belt essentially contested by Maoist insurgents. The private sector can substitute for some of these deficiencies but never completely. – In the long run, growth is determined by effective state capacity: that is India’s weakness compared with China.”

Here is more, in the form of a debate.  Hat tip goes to Tom Murphy.


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