India is at a crossroads today, its growth rate, while respectable relative to other large countries, is too low for jobs for youth, need intense competition in low-skilled manufacturing increasing protectionism globally and growing automation, make the situation still more difficult. 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. 

Raghuram Rajan, former governor of the Reserve Bank of India, and Rohit Lamba, an economist at Pennsylvania State University explain  how we can accelerate economic development by investing in people , expanding opportunities in high-skilled services and manufacturing centered on innovative new products, and making India a ferment of ideas and creativity. The authors urge India with detailed recommendations for reforming its industrial strategy, healthcare, education and democracy, to break free from the shackles of the past and look to the possibilities of the future.

They suggest India should not attempt to follow other countries by walking the low-skilled manufacturing path to economic development, many nations are now competitive in building and processing  but to leverage its expertise in direct services exports from IT to education, as well as services embedded within the manufacturing sector. India should also work to bolster its democracy- as the ability to think and speak out critically is essential for innovation.

Breaking the Mould: Reimagine India’s Economic Future, by Raghuram Rajan & Rohit Lamba, Penguin  Random House, India