lack of governance and mis-governance.

India lacks adequate governance, which is extensively required to pull the country up to a first world status by 2050.

There is only so much the private sector can do. For the country overall, for the sake of its cohesion............ socially, politically, economically, morally its the governments duty and responsibility to do the rest strategically in a planned looking forward manner. One is quite certain the Ambani's or any other businessman when they deeply look at future business investments don't do so socially, politically, economically, morally......most of the time, but whether their business investment will make a profit and given them steady returns.

This lack of governance is simply indicated by the national budget in Delhi which represents a paltry 15% of GDP (the official GDP, and not the one with the black economy included which would mean India's actual GDP is closer to $4--4.5 billion).

Pranab Mukherjee sahib can India have a peoples budget of $400 billion for 2012-2013? With massive expenditures and investments in the job creating INDUSTRY and INFRASTRUCTURE sectors.

This lack of governance means only 30 million Indians out of a population of 1200 million Indians (including supposedly 250 million middle class Indians) pay tax. There is ample computerized systems in India from Bangalore, and national ID cards are being introduced, so lets double the taxable base to 60 million for the 2012--2013 budget. Apparently $1.5 trillion worth of Indian money is lying idle in Swiss accounts, and we don't know the true figure for the rest of the 70 odd tax havens.

Clearly in the tax sector there is a lack of effective efficient governance.

This lack of governance means large swathes of Indian society are little impacted by government actions. To them the government in Delhi is irrelevant.

Then you have mis-governance...which means the little impact with the little money the government does use to exercise its writ is itself misused, hence the corruption scandals about everything from Defense contracts to staging the Commonwealth Games, and the source of the only joke I Knew for quite a while:

Indian Neta in Washington invited to a rich Congressman's mansion overlooking the Potomac. They start on their 15 course meal served on an elegant mahogany table, including roast duck, lamb, the finest caviar and Belgian chocolates. The Congressman shyly ushers the neta to the window, at the end of the feast and speaks.."You see that bridge on that river over there.......10%....I made 10% from that."

The neta impressed invites the Congressman to his Dili mansion over looking the Yamuna, and in his white marble colonial style mansion he too offers up a 15 course feast for his American counterpart. At the end of the meal the neta beckons the Congressman to the window with a SLY GRIN and the traditional Indian nod of the head and as they both peer through the huge window, the neta whispers in child like delight......"You see bridge over there by the Yumuna.....can you see it?"

The Congressman is puzzled, "Bridge what bridge?"

Neta pointing to himself, "100%......me got it all! Son in Harvard, and my money in Mauritius/Hong Kong....wife daughter in London for the summer shopping"

Whats that oft repeated cliche? India is doing reasonably well despite its government.