Abstract:Since India's independence in 1947, successive governments have kept on seeking long and hard on the question of how to develop India's national economy, improve India's state capacity, as well as achieve its national greatness. Ultimately, India chooses the path of economic reform that characterized with liberalization, privatization, marketization, and globalization, which also has made great achievements. Meanwhile, India also faces number of tough issues to be resolved and optimized due to the long-standing abuses in its democracy, federal system, legal system and civil service. Besides, India's path where outward power is mainly considered has already determined its weakness in state capacity and lacking of strength in building of state capacity.