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This paper analyzes the relationship between the Indian state and society for promoting economic growth and development in India. It argues that the shift to private sector and trade promotion, which was essential for growth, required technocratic conviction and economic crises, for accelerating the pace of change. While growth has resulted in social development, serious challenges to growth and human development remain. Poor physical and human infrastructure in many areas, and the politics of subsidies for the well-to-do at the cost of more inclusive public investment, pose major challenges for making the growth story a more inclusive one. [ABSTRACT FROM AUTHOR]