Political inertia and pervasive corruption remain the primary forces stifling the middle class. Today, the average Indian hesitates to venture into entrepreneurship, paralyzed by an intimidating regulatory landscape and relentless bureaucratic red tape. Despite high-profile federal initiatives offering grants and credit to MSMEs, true ground-level ease of doing business remains elusive.
Consequently, ambitious risk-takers are forced into the safe harbor of foreign enterprise—most notably the proliferating Global Capability Centers (GCCs) setting up shop across the nation.
While these GCCs thrive on India’s extraordinary talent for operational execution—the rare ability to manage complex global systems with daily consistency and unyielding precision—they effectively channel domestic genius toward foreign growth engines rather than building indigenous giants.
This current reality stands in stark, poignant contrast to ancient India, where unyielding meritocracy defined the intellectual fabric. Historic seats of learning like Nalanda and Takshashila attracted scholars from across the globe, establishing the subcontinent as the undisputed epicenter of research, innovation, and educational leadership. Today, a profound irony unfolds: a nation that once pioneered the world’s most formidable learning ecosystem now looks outward for validation and opportunity, seemingly blind to the buried treasure in its own backyard. Reclaiming that legacy requires dismantling the administrative friction that prevents native talent from transforming domestic enterprise into global excellence.
Great essay and observation. I believe apart from poverty another reason for this is what I call “ Civilizational Hangover” . Indians ( including me) sometimes do not want to change old ways even though it is obvious that it will not work. There is a feeling that “ once we were great so this shall work” but in reality it’s far from it. Luckily for me , living in West for 25 years I have understood this and changed my thinking / behaviour so that I make sense at work and in social life. I still make mistakes sometimes though.
Good question. China is good at institutions. India is not. That’s the point. They haven’t focused on football. On the other hand, India has the world’s third oldest football tournament and yet it sucks at it.
Thank you for giving the backstory on India’s great hotel industry. No one does it better as experienced at our stay at the Hotel Oberoi Rajvilas in Jaipur and other high-end accommodations. Talk about personal attention and regard to detail! I often wondered how India could excel in this industry while languishing in others, and now I know. Following your Substack, and talking at length with the young people employed in these incredible hotels, has opened our eyes to the promise that modern India presents.
Thanks. As I keep trying to say to people, India is not a normal country. It just isn’t. And trying to analyze it as such leads non-Indians into all sorts of analysis errors. India is quite sui generis!
Political inertia and pervasive corruption remain the primary forces stifling the middle class. Today, the average Indian hesitates to venture into entrepreneurship, paralyzed by an intimidating regulatory landscape and relentless bureaucratic red tape. Despite high-profile federal initiatives offering grants and credit to MSMEs, true ground-level ease of doing business remains elusive.
Consequently, ambitious risk-takers are forced into the safe harbor of foreign enterprise—most notably the proliferating Global Capability Centers (GCCs) setting up shop across the nation.
While these GCCs thrive on India’s extraordinary talent for operational execution—the rare ability to manage complex global systems with daily consistency and unyielding precision—they effectively channel domestic genius toward foreign growth engines rather than building indigenous giants.
This current reality stands in stark, poignant contrast to ancient India, where unyielding meritocracy defined the intellectual fabric. Historic seats of learning like Nalanda and Takshashila attracted scholars from across the globe, establishing the subcontinent as the undisputed epicenter of research, innovation, and educational leadership. Today, a profound irony unfolds: a nation that once pioneered the world’s most formidable learning ecosystem now looks outward for validation and opportunity, seemingly blind to the buried treasure in its own backyard. Reclaiming that legacy requires dismantling the administrative friction that prevents native talent from transforming domestic enterprise into global excellence.
Great essay and observation. I believe apart from poverty another reason for this is what I call “ Civilizational Hangover” . Indians ( including me) sometimes do not want to change old ways even though it is obvious that it will not work. There is a feeling that “ once we were great so this shall work” but in reality it’s far from it. Luckily for me , living in West for 25 years I have understood this and changed my thinking / behaviour so that I make sense at work and in social life. I still make mistakes sometimes though.
I don't get the argument.
For a billion plus people, China was nowhere in the recent football world cup (qualified only in 2002, based on a quick Google search)
Does any of what you say explains that?
Good question. China is good at institutions. India is not. That’s the point. They haven’t focused on football. On the other hand, India has the world’s third oldest football tournament and yet it sucks at it.
Thank you for giving the backstory on India’s great hotel industry. No one does it better as experienced at our stay at the Hotel Oberoi Rajvilas in Jaipur and other high-end accommodations. Talk about personal attention and regard to detail! I often wondered how India could excel in this industry while languishing in others, and now I know. Following your Substack, and talking at length with the young people employed in these incredible hotels, has opened our eyes to the promise that modern India presents.
Thanks. As I keep trying to say to people, India is not a normal country. It just isn’t. And trying to analyze it as such leads non-Indians into all sorts of analysis errors. India is quite sui generis!