India: Moving from a Muscle Economy to a Brain Society

This article examines the fundamental shift in India's development paradigm, proposed by economists Raghuram Rajan and Rohit Lamba. Instead of replicating the traditional Asian model based on cheap labor, the authors advocate a shift toward a "brain economy." A key element of this vision is the use of the smile curve concept, which shifts the focus to the stages of design and advanced services, where the highest added value is generated. The article also examines systemic barriers, such as malnutrition and poor quality education, that hinder demographic transformation. It highlights the role of liberal democracy as a vital mechanism for innovation. This is a profound reflection on redefining economic success, where the development of human potential becomes more important than raw GDP indicators.