India is an emerging economic giant. Deepak Lal will explain the role that modernity and tradition have played in that country’s recent moves to the market after decades of stagnation. Why has democracy succeeded and the caste system survived in India? Why did India switch to more liberal economic policies, and why is it likely to overtake China in the race for economic growth? Lal will provide answers to those questions and review India’s development challenges. Anne Krueger will comment on the record and prospects of Indian growth and poverty reduction.