Economists often talk of the “ladder of development”. Historically a huge rung in that ladder has been a large amount of employment in the manufacturing sector leading to the creation of a middle class. Recently, as shown in the research of Dani Rodrik and others, poor countries are prematurely de-industrializing.
India is one of the most dramatic cases. Here’s Dani:
Industrialization peaked in Western European countries such as Britain, Sweden, and Italy at income levels of around $14,000 (in 1990 dollars). India and many sub‐Saharan African countries appear to have reached their peak manufacturing employment shares at income levels of $700.
Fortunately India now has a virile, proud, manly PM who is going to fix all this.
Robin tried the website multiple times today and it apparently is non-functional. So maybe it is an Indian lion after all?
While the Indian press is generally quite positive on the campaign, one prominent Indian is skeptical.
I gotta say that I’m with Rajan on this one. Sorry Modi.