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There was a very good article in yesterday'sNY Times about the testing culture in India's middle class, focusing on the need for more good colleges and universities to handle the country's huge young population. Random impressive statistic: 320,000 students applied for I.I.T.'s 8,000 open spots.

The university overcrowding was behind the Cabinet's recent decision to open up higher education to foreign universities--three cheers for another protectionist barrier falling!

To drive home the connection between university quality and development, here's an article from the January Economist about the "Engineering Gap" between the U.S. and India.

But that is not just an issue for outsourced jobs--the Indian tech sector still lags behind in creating new technologies despite its huge domestic market.