The Power and the Potential of India’s Economic Change

William Grimes reviews In Spite of the Gods: The Strange Rise of Modern India by Edward Luce, in the New York Times Book Review:

Screenhunter_03_jan_17_0006India’s dizzying economic ascent began in 1991, when the government abruptly dismantled the “license raj,” a system of tight controls and permits in place since independence in 1947. Mr. Luce, as you might expect from a Financial Times reporter, does a superb job of explaining the new Indian economy and why its transformation qualifies as strange.

Unlike China, India has not undergone an industrial revolution. Its economy is powered not by manufacturing but by its service industries. In a vast subcontinent of poor farmers whose tiny holdings shrink by the decade, a highly competitive, if small, technology sector and a welter of service businesses have helped create a middle class, materialistic and acquisitive, along with some spectacularly rich entrepreneurs.

More here.