This paper offers an interpretation of India’s recent political economy in relation to the
longer-term history since independence. It argues that an understanding of both
ideas and interests is required for this interpretation. While politics and policy are
often portrayed in terms of a tussle between market-based reform and populist social
provisioning, the interpretation here sees more continuity, and the coexistence of
such seemingly competing narratives, that reflect the “cognitive maps” of the major
actors. The performance of the state, and ideas around the state, remain central to
India’s politics. While the theme of a “corrupt state” is a longstanding one, India’s
future development will depend crucially on improving state functioning, through both
the deepening of democracy and administrative reform. The cognitive maps of
political, bureaucratic and business elites will continue to play an important role in
policy and institutional designs, and in particular over whether there will be the kinds
of transformational changes that are being demanded by an increasingly aspirational
electorate.