India's Economic Development

SOURCE www.npr.org
India's economy has fallen behind China's due to lack of focus on manufacturing. Former Central Bank of India head Raghuram Rajan argues for a shift towards service-led growth to capitalize on the country's demographic dividend and leapfrog into prosperity.

Key Points

  • India's GDP per capita significantly lags behind China's due to historical focus on manufacturing
  • Raghuram Rajan advocates for a shift towards service-led growth to leverage demographic dividend
  • India needs to prioritize improving education, building world-class universities, and investing in the service sector

Pros

  • Projected GDP growth of over 6.5% this year
  • Increased investment in infrastructure and booming stock market
  • Opportunities in service sector for growth and prosperity

Cons

  • India's lag in manufacturing compared to China
  • Concerns about extreme poverty and joblessness persist
  • Need for faster economic growth to capitalize on demographic dividend