Please read the HBS case India: State capacity and unity in diversity

Look at Exhibit 1 d which compares labor productivity levels in several Asian countries and the U.S.

Among the countries the PPP productivity level expressed in US dollars is $6.46 in India, below any other

Asian country and about 12% of US productivity level.

Analyze the reasons for the low productivity level of India.

Please use information from the case including:

  • Exhibit 1 related to Composition of GDP over time (use the period (2010-2019),
  • Exhibit 1 on Expenditures of government on interest payment on debt
  • Exhibit 5 on Education levels, including adult literacy
  • Exhibit 6 b on Formal employment as share of GDP
  • Exhibits 8a and 8b on Ease of doing business

Based on this data summarize the key reasons for the low productivity in India.