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India's Economy: Growth or Fewer Freedoms?
22 Jan
Summary
- An economist highlighted India's unique development path.
- China is richer than expected given its lack of democracy.
- India faces a choice: rapid growth or institutional decline.
Arvind Subramanian, India's chief economist from 2014 to 2018, presented a thought-provoking analysis during his tenure. His annual "Economic Survey" reports, known for their engaging content beyond dry economic data, included a notable chart.
This chart illustrated a strong link between democratic governance and economic development. It pinpointed China as an outlier, being wealthier than its democratic standing would suggest. Conversely, India appeared less prosperous than expected, given its vibrant democratic system.
The survey outlined two primary trajectories for India to align with global economic averages. These included achieving rapid economic expansion or experiencing a deterioration of its institutional framework. This juxtaposition has fueled discussions on India's future development strategy.
