Thomas Piketty says India needs big spending on schools and health to grow

India can avoid the middle-income trap by making massive investments in education, healthcare, and infrastructure, according to French economist and inequality specialist Thomas Piketty. Piketty shared this view on Tuesday while pointing out that India also needs to join global coalitions to drive inclusive and sustainable growth. The middle-income trap happens when a country can no longer compete globally in low-cost, labor-heavy goods because wages get too high. At the same time, the country fails to compete in higher-value work because its productivity remains too low, which leads to slow economic growth.