“Economic growth and social progress are best achieved by stripping away illusions and delusions and starting with a stark understanding of the challenges that confront India. Once that understanding is in place, the necessary policy and behavioral changes can and will follow with relatively more ease”
“India faces acute capital deficiencies on multiple fronts as well as much under-appreciated adverse global structural headwinds which pose serious constraints to the achievement of sustainable high growth rates. High growth can be achieved only as episodes of over-heating followed by years of pain and lower growth from cleaning up the excesses. In the circumstances, the most prudent strategy may be to target a long period of moderate growth by focusing on steady economy-wide physical, human, and institutional capital accumulation and opportunistically riding on emergent global tailwinds.”
Shankar Aiyar in his book Accidental India argues that every major worthwhile reform done in India is due to a compulsion to act in the face of a crisis – 1991 economic reforms in the face of balance of payment crisis, green revolution in the face of food shortages etc. None of the paradigm changing actions were an act of true will but were demands of circumstances. If we were to continue this trend, wellbeing of the country is only a pipe dream because of the costs due to delay and the fact that weakness in some sectors doesn’t necessarily result in a crisis. Waiting for a crisis to increase attention to these sectors is not a wise strategy.