The South Asian Path of Development: A Historical and Anthropological Perspective

This chapter explores the cultural basis of economic development in the long-term history of India. India has always been a meeting place of diver­sities, where the development path is “diversity-driven”. It did not rely solely on enhancement of productivity, but more on diversification of knowl­edge leading to the multiplication of the kinds of products and services. Early-modern India developed a socio-economic system that adapted to seasonal and inter-annual variations in rainfall, managed risks through a system of shares, and accumulated the fruits of labor in the form of specialized skills in social groups. The colonial period saw a partial divergence from the development path when caste hierarchy was “traditionalized” and various social groups were “peasantized”. Today, we see a reconvergence to the diversity-driven path where the post-peasant masses are diversifying sources of income to secure livelihood and increase life chances. Also, there is a new reassembling of diversities where varied skills and knowl­edge meet and give rise to innovations. The agenda for the Indian economy lies in mediating and enabling a smooth linking between various sectors and modes of production with a balance between the rural and the urban, agri­cultural and non-agricultural, informal and formal, and livelihood and profit.