Restart audiobook cover - The Last Chance for the Indian Economy

Restart

The Last Chance for the Indian Economy

Mihir Sharma

★ 3.6 / 5(16 ratings)
Start ListeningDownload App
Categories:
Economics

If You're Curious About These Questions...

You should listen to this audiobook

Listen to Restart — Free Audiobook

Loading player...

Key Takeaways from Restart

Learning Tools

Reinforce what you learned from Restart

Mind Map

Restart
Economic Stagnation & Culture+
Employment & Industry+
1991 Crisis & Flawed Reforms+
Infrastructure & Private Sector+
Managing Natural Resources+
Agricultural Transformation+

Quiz — Test Your Understanding

Question 1 of 8
Why do planners in India sometimes proceed with infrastructure projects they know are too small for the demand?
  • A. Because international funding organizations limit the size of urban projects.
  • B. Because cultural beliefs often view anything beyond the bare minimum as an excessive waste of resources.
  • C. Because the government intentionally wants to discourage people from driving private vehicles.
  • D. Because private companies refuse to build larger projects without full upfront payment.
Question 2 of 8
What is a primary reason many Indian companies deliberately avoid expanding their businesses and hiring more employees?
  • A. They want to avoid crossing the 99-employee threshold, which attracts corrupt government inspectors demanding bribes.
  • B. There is a severe shortage of skilled labor in both rural and urban areas.
  • C. The government strictly caps the number of workers allowed in the manufacturing sector to prevent monopolies.
  • D. Larger companies are forced by federal law to provide free housing and healthcare for all factory workers.
Question 3 of 8
What was the unintended consequence of devaluing the rupee during the 1991 loan crisis?
  • A. It caused a massive surge in agricultural exports, leading to domestic food shortages.
  • B. It made foreign imported goods so cheap that local manufacturers went out of business instantly.
  • C. It made imported raw materials too expensive, causing a sharp decline in local manufacturing.
  • D. It led to the immediate privatization of all state-owned natural resources to pay off national debt.
Question 4 of 8
Why did industries like information technology (IT) and finance manage to grow during the economic crisis while traditional manufacturing struggled?
  • A. They received massive emergency subsidies and tax breaks from the federal government.
  • B. They relied entirely on foreign labor, allowing them to bypass Indian labor laws.
  • C. They didn't require much land, allowing them to avoid the strict regulations that stifled traditional manufacturing.
  • D. They were the only industries legally permitted to export goods and services at the time.
Question 5 of 8
According to the text, why did private sector investment in national infrastructure projects drop drastically between 2005 and 2013?
  • A. The government passed a law banning private companies from participating in public infrastructure.
  • B. Companies feared economic loss because projects took too long and were bogged down by bizarre rules and regulations.
  • C. Private companies lacked the modern engineering expertise required for large-scale national projects.
  • D. The government consistently refused to pay the private sector upon the completion of public projects.
Question 6 of 8
To prevent companies from taking dangerous shortcuts in infrastructure development, what solution does the author suggest?
  • A. Splitting infrastructure projects between two distinct companies: one for operations and one for actual construction.
  • B. Allowing foreign companies to completely take over the construction of all national projects.
  • C. Replacing all private construction firms with government-run military engineering divisions.
  • D. Eliminating all government regulations so companies can build faster and cheaper without interference.
Question 7 of 8
What lesson did the Indian government learn from the Tata and Adani power plant contracts in Gujarat?
  • A. Private companies are highly efficient at distributing electricity to rural areas at a low cost.
  • B. Allowing private companies to control vital natural resources can lead to extortionate price hikes and blackouts.
  • C. Subsidizing coal extraction for private companies leads to significant environmental improvements.
  • D. Auctioning off natural resources is the most reliable way to keep consumer utility prices low.
Question 8 of 8
Why do Indian farms predominantly grow wheat and rice instead of a wider variety of crops like vegetables?
  • A. The soil in most of India is biologically incapable of growing anything other than wheat and rice.
  • B. Vegetable farming requires massive tracts of land that small Indian farmers simply do not own.
  • C. The government buys these specific crops and provides cheap resources, while poor infrastructure causes vegetables to rot during transport.
  • D. International export agreements strictly prohibit India from selling vegetables on the global market.

Restart — Full Chapter Overview

Restart Summary & Overview

A few decades ago, India seemed poised to become a major player in the global economy. Today, a number of serious problems hold the country back. Restart (2015) explains what caused India’s decline and offers insights about what could be done to fix it.

Who Should Listen to Restart?

  • Students of economics, political science and sociology
  • Anyone interested in India

About the Author: Mihir Sharma

Mihir Sharma is a Harvard-educated economist who started his career as a journalist for the Indian Express. He serves as the Opinion Editor for the Indian broadsheet Business Standard.

🎧
Listen in the AppOffline playback & background play
Get App