ABSTRACT
This chapter provides the limitations of Indian capitalism and the constraints and challenges facing its advancement in a global economy in which there are rapidly changing trajectories, shifts in global power and newly emerging fragilities, as well as new sources of economic dynamism. Despite recent economic growth and a contemporary situation in which the Indian economy is seen as potentially stronger and less vulnerable than other newly emerging markets such as Brazil. It was only in 1979 just after the agricultural reform in China that unleashed the productive forces of the peasantry in the context of a relatively egalitarian countryside that China overtook India in terms of global income share. China exceeded Indian in per capita GDP only in 1985, but thereafter the divergence was dramatic, because of the combination of faster aggregate output growth and lower population growth in China compared to India.
