The new path for economic development that India must create

The whole world has a stake in Indias future, and that future hinges on whether India can develop its economy and deliver for its populationnow the worlds largestwhile staying democratic. Indias economy has overtaken the United Kingdoms to become the fifth-largest in the world, but it is still only one-fifth the size of Chinas, and Indias economic growth is too slow to provide jobs for millions of its ambitious youth. Blocking Indias current path are intense global competition in low-skilled manufacturing, increasing protectionism and automation, and the countrys majoritarian streak in politics. In Breaking the Mold, Raghuram Rajan and Rohit Lamba show why and how India needs to blaze a new path if its to succeed.

India diverged long ago from the standard development model, the one followed by Chinafrom agriculture to low-skilled manufacturing, then high-skilled manufacturing and, finally, servicesby leapfrogging intermediate steps. India must not turn back now. Rajan and Lamba explain how India can accelerate growth by prioritizing human capital, expanding opportunities in high-skilled services, encouraging entrepreneurship, and strengthening rather than weakening its democratic traditions. It can chart a path based on ideas and creativity even at its early stage of development.

Filled with vivid examples and written with incisive candor, Breaking the Mold shows how India can break free of the stumbling blocks of the past and embrace the enormous possibilities of the future.