India has made a great deal of economic progress in recent years. But it has yet to catch up with other emerging economies in per capita GDP, human development, and innovation, including its neighbor and BRICS peer, China.
Markets have taken notice, with iShares S&P India lagging behind the equity market of neighboring Pakistan.
The root cause India's lagging behind other emerging economies is the country's economic model-A Semi-Soviet, semi-Latin model that is backwards – it applies markets and governments in areas of the economy where each institution fails rather than excels.
This has resulted in a large and corrupt government that lacks the resources to execute its multiple roles in the economy.