Restart: The Last Chance for the Indian Economy by Mihir Sharma Summary

Restart analyzes India’s economic stagnation and proposes reforms to unlock growth. Mihir S. Sharma critiques outdated policies in land, labor, and infrastructure, emphasizing systemic corruption, black money, and bureaucratic inefficiencies. The book argues for market flexibility, urbanization, and agricultural modernization to harness India’s demographic potential, blending sharp analysis with real-world examples like half-built highways and skill mismatches.

This book is essential for policymakers, economists, and students of Indian political economy. It also appeals to general readers interested in understanding why India’s growth stalled post-2000s and how systemic reforms could reignite progress. Sharma’s accessible journalism-style writing makes complex economic concepts digestible for non-experts.

Mihir S. Sharma is an economist, Bloomberg Opinion columnist, and senior fellow at the Observer Research Foundation. Trained at Harvard and St. Stephen’s College, he combines a decade of financial journalism with policy analysis. His work on corruption, infrastructure, and economic reform has earned accolades like the Tata LitLive Business Book of the Year.

Yes. Despite being published in 2015, Restart remains relevant for its incisive critique of persistent issues like regulatory red tape and underinvestment in cities. Its solutions—such as decentralizing governance and empowering the private sector—align with ongoing debates about India’s economic future.

Sharma argues that India’s economy is stifled by:

• Archaic laws: Restrictive land acquisition and labor policies deter investment.
• Black money: Corruption drains public resources and distorts markets.
• Urban neglect: Poor city planning exacerbates unemployment and infrastructure gaps.

The book advocates for liberalizing markets, boosting manufacturing, and reforming agricultural subsidies.

Sharma highlights India’s failure to build livable cities as a key growth barrier. He critiques single-lane flyovers and half-finished highways as symbols of poor planning, urging investment in public transit and affordable housing to absorb rural migrants and create jobs.

The book links black money to distorted political incentives and wasted public funds. Sharma argues that untaxed wealth fuels corruption, undermines welfare programs, and perpetuates inequality, advocating for stricter enforcement and transparent governance to restore trust.

Unlike academic texts, Restart blends data-driven analysis with journalistic storytelling. While similar to India’s Tryst with Destiny by Jagdish Bhagwati, Sharma focuses more on grassroots inefficiencies than macroeconomic theory, offering actionable solutions over abstract critique.

Sharma calls for reducing input subsidies (e.g., fertilizers, electricity) that distort markets and harm sustainability. He advocates consolidating small farms, improving cold-storage infrastructure, and connecting farmers directly to urban markets to boost incomes.

The book condemns underfunded, poorly executed projects like Delhi’s Rao Tula Ram Flyover, which caused traffic chaos due to single-lane design. Sharma stresses the need for public-funded construction managed by private firms to balance accountability and efficiency.

While critical of crony capitalism, Restart argues the private sector should lead job creation and innovation. Sharma proposes reducing licensing hurdles and reforming bankruptcy laws to encourage competition while preventing monopolistic practices.

With over 60% of Indians under 35, Sharma warns that failing to create jobs could lead to social unrest. He ties youth unemployment to skill gaps caused by outdated education systems and restrictive labor laws that deter formal hiring.