India's Socially Regulated Economy

"If there is a solvent for this spatially and socially clustered economy, it is more likely to be the state rather than the market. The state may operate not only via its interventionist control over strategic sectors which provide raw and intermediate materials but also via the provision of infrastructure and subsidies….The leaching of taxable resources into the rapidly expanding black economy deprives the state of resources…. Black wealth is laundered abroad, or stored in real estate, finance, (retail) inventory and a relatively small amount in the form of gold….If points of leverage for change exist at all, they lie in institutional mechanisms which might make capital more accountable to the state, and the state to other parts of civil society.”