The incredibly difficult threads that paleo-libertarians, social liberals, neocons, full-on socialists, communists (i.e. almost all sides of the political spectrum) refuse to pull on when they talk about India (and lazily attribute every problem to muh culture, muh religion, muh genetics):

•Prevailing caste tensions dating back to the extremely bureaucratic pattern of economy and society during the colonial era, which resulted in demands for affirmative action post-independence rather than for opening up trade and business. More or less solved but still not open enough yet. Of course this would make everything in society a power struggle, and result in politicalization of all interactions. Economising becomes a pipe dream.

•The destruction of metallic money and credit systems as they became centralised by fiat-like systems initially to a full-blown fiat system which pegged the Rupee to the Pound. This was followed by the establishment of a central bank in the early decades of the 1900's. The hold that this institution has had on the credit market post-independence is far greater than that of other central banks elsewhere. So much so that different industries had mandated interest rates. And let's not forget the bank nationalisation which made the problem worse. Progress has been made by removing these chains, but simply not good enough.

•The distortion of prevailing property titles by the Ryotwari, Mahalwari and Zamindari systems, the excessive property taxes, displacement and peasantisation of land-owners, the inadequate application of the title-transfer theory of property rights while implementing land reforms, land ceiling and land redistribution legislation post independence to address this.

•Existense of directive principles in the constitution which permits the state to impose welfare systems.

•The socialistic pattern adopted post independence which carried on the colonial legacy of bureaucratic control. 5 year plans that led to misallocation, malinvestment and stagnation.

•The spread of legal positivism and the destruction of prevailing legal systems.