In the latest Baker Institute Policy Report, Russell A. Green, Ph.D., the institute"s Will Clayton Fellow in International Economics, examines obstacles that are stunting India"s economic growth. The Indian economy"s growth rate, above 6 percent at present, has largely been sustained through jugaad, a Hindi term referring to perseverance despite low income levels and limited resources. But with its large domestic market, diversified economy and pool of competitive labor, India has the potential to reach impressive double-digit growth rates.
Too often, jugaad replaces insufficient basic government services like power, public education, transportation infrastructure and even functioning courts, Green explains, and this deficiency becomes a binding constraint on economic growth. He outlines policy recommendations that would help supply essential government services and allow India to reach its full economic potential.