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India is at a crossroads today. Its growth rate, while respectable relative to other large countries, is too low for the jobs our youth need. Intense competition in low-skilled manufacturing, increasing protectionism globally and growing automation make the situation still more difficult. Divisive majoritarianism does not help. India broke away from the standard development path―from agriculture to low-skilled manufacturing, then high-skilled manufacturing and, finally, services―a long time back by leapfrogging the intermediate steps. Rather than attempting to revert to development paths that may not be feasible any more, we must embark on a truly Indian path.

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Raghuram G.Rajan is a world-renowned Indian economist who is currently a distinguished service professor at the University of Chicago Booth School of Business. His past policy positions include governor of the Reserve Bank of India and chief economist at the International Monetary Fund.

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