What should India do to become a prosperous, high‐income country within the next 25 years? In this Corden Lecture, I argue that India needs ‘more of the market’ as well as ‘more of the state’, each in its proper domain. This theme is elaborated by identifying and examining the following problem areas in India's economic landscape: dysfunctional subsidies and inefficient redistribution; labour market distortions and the employment problem; inefficient public‐sector enterprises; poor quality of primary education; and weakness of state capacity. The lecture ends with some reflections on India's democratic system, which provides the setting in which economic reform has to be implemented.