India faces an obstacle to its economic potential: the weakness of its governance system. This shortcoming hinders the effective delivery of essential services to citizens, affecting education, healthcare, and other crucial areas. The author argues that investing in building the capacity of the Indian state is paramount to overcoming this challenge. However, political incentives and a lack of institutional support often undermine such investments. Moreover, India’s attempt to provide comprehensive welfare services despite limited fiscal capacity has led to a ‘vote bank’ politics that prioritizes short-term gains over long-term development. The author emphasizes the need for independent institutions to align politicians’ interests with public welfare, as well as the importance of strategic philanthropy that focuses on improving governance rather than just providing direct relief.