Archive · 17 Jan 2026
India's Fiscal Challenges and Development Path Discussed
Arvind Subramanian, a former economic advisor, and Devesh Kapur, a professor, talked about India's money problems and how the country can grow.
They said India spends too much money and has a big deficit, like a generous goddess giving to everyone.
They think the government and states should work together more and trust each other.
They also said India's factories aren't big enough and don't hire many workers.
The schools, like IITs, aren't as good as they could be and send smart people to the US.
They think India's best decisions were about helping everyone and not favoring one language or religion.
They want India to keep these good things and not waste them.
India's government deficit is the highest among comparable emerging market countries at almost 10% of GDP every year since 1991.
Arvind Subramanian and Devesh Kapur emphasized the need for cooperative federalism with trust between Centre and State governments.
Indian manufacturing is not labour-intensive, with firms described as 'midgets making widgets' and high-skilled talent being exported.
IITs and other early universities have not become world-class research centers and have been disrupted by student politics.
The authors noted that India's best decisions were affirmative action for disadvantaged minorities and not basing the State on any one language or religion.
- Who
- Arvind Subramanian, Devesh Kapur, Narendar Pani
- What
- Discussion on India's fiscal challenges and development path
- When
- January 17, 2026
- Where
- The Hindu Lit for Life 2026
- Why
- To discuss India's economic development and challenges
- Speakers
- Arvind Subramanian, Devesh Kapur, Narendar Pani
- Event
- The Hindu Lit for Life 2026
- Book
- A Sixth of Humanity: India's Development Odyssey
- Government Deficit
- Almost 10% of GDP every year since 1991
- Manufacturing
- Not labour-intensive, firms are 'midgets making widgets'
- Education
- IITs not world-class, talent exported to the US
- Government Jobs
- Paid 4-5 times more than private sector