She points out that India has done a marvelous job in building a revenue (and tax) generating IT sector employing 1 million people, drugs but it has only 7 million employed in the formal manufacturing sector vs. 100 million people in China. The bottom line is that India is not generating enough jobs for the 10+ million Indians who enter the job market each year.
Other economies in Southeast Asia have successfully developed ahead of India “by being relatively open to trade; by investing in primary and secondary education; and by building pretty decent infrastructure (not only roads and ports, buy but health clinics and water supplies). India has begun to embrace one leg of this triangle – freer trade … As for the other two legs of this development triangle – education and infrastructure – these are still badly broken. About a third of teachers fail to show up on any given day (and, of course, are unsackable); the supply of both water and power is expensive and unreliable.”
Other key areas which India needs to focus on before boasting about being a superpower: an unreformed state banking sector; labor regulations that actively discourage hiring; abstruse land laws (and consequent lack of land titles); misshapen subsidies that hurt the poor; and corruption that is broad, deep and ubiquitous.
It is a very good thing to have a free press which publicly calls out these kind of issues.