The term was coined by Larry Summers, an American economist and a key advisor as well as decision-maker for the White House in the Obama administration at the U.S.-India Business Council in 2010.
"[3] Larry SummersSummers also suggested that India's model may become increasingly viable for other nations because it does not fail the middle class but instead allows this group to prosper, whilst not deviating from the traditional capitalist approach to running the economy.
The strength of India's democracy has consistently shown itself in fair and free elections, at regular intervals without being characterized by military coups or frequent martial law impositions.
Though gender issues continue to be persistent, especially in conservative rural areas, a young woman in India has the possibility of pursuing a political or entrepreneurial career, spurred on by countless micro-finance institutions, that only lend to women entrepreneurs.
Finally, the lag in time allows for the creation of regulatory agencies like the TRAI (telecom), SEBI (capital markets), TAMP (ports) and CERC (power) that are positioned to prevent some of the excesses that lead to the recent global recession.
One of the most potent critiques of the Washington Consensus-based economic development model is that it does not cater to the middle class and creates widening gaps between the richest and poorest in the economy.
[2] A large component of this reduced income inequality is due to India's growth being driven by domestic demand and consumption by the middle class.
[2] Information technology and business process outsourcing are among the fastest growing sectors, having a cumulative growth rate of revenue 33.6% between 1997–98 and 2002–03 and contributing to 25% of the country's total exports in 2007–08.
[10] Since gaining independence, India has maintained a strong neutral stance on global geopolitical shifts, especially the Cold War, that have both hindered and assisted their economic development.
After having been the victim of British mercantilist trade policies for centuries, Nehru and Mahatma Gandhi both stressed the need for autarkic indigenous industrialization and independence from the Great Powers of the time.
Nehru, along with Abdel Nasser in Egypt and Joseph Tito in Yugoslavia, were champions of the Non-Aligned Movement, that sought to maintain neutrality in the Cold War.
In response to aggressive overtures from both Pakistan and earlier nuclear-armed China, the pursuit of nuclear weapons in India was as much a security concern as one of international prestige.
The end of the Cold War led to a departure from non-alignment - pragmatic security, economic considerations, and domestic political influences reinforced New Delhi's reliance on the United States and other developed countries.
Das believes India needs to shift focus from peasant farming to agribusiness and encourage private capital to move from urban to rural areas.
Largely a result of Chief Minister Nitish Kumar's work, Patna is now the second-easiest city in India to start a business with 11 stages in the process, 8 of which are national and common across states.