HOW HAS the Indian economy changed since Independence? Was there anything underlying the spurt of growth since 2002 or was it merely a flash in the pan? We argue here that the Indian economy is today private-led, far less dependent on agriculture and much more integrated into the international economy. It saves and invests much more and its workforce is more educated. Given appropriate policies, a new, higher growth path is distinctly possible. Figure 1 plots the growth in gross domestic product (GDP). Trend growth in India till mid-1980s was flat at around 3.5 percent, for so long that it was dubbed the ‘Hindu’ rate of growth. This growth fluctuated considerably, in part due to the large share of weather dependent agriculture. In the mid-1980s, as initial reforms were introduced (Rodrik and Subramaniam 2005), average growth moved up to about 5.5 percent and became more stable, till about 2002-03, when it begun to accelerate. Is this acceleration sustainable, or is the current downturn signalling a return to earlier growth levels?Five Big ChangesPredominant Private Sector This is about a change that did not happen. The government has never dominated the Indian economy, but Figure 2a shows that in the first forty years, partly because of trying to secure the ‘commanding heights’ of the economy, its contribution rose from 8.7 percent to 21.6 percent.