3 - India's Economic Transformation
Published online by Cambridge University Press: 05 June 2012
Summary
How did India make the transition from an economic laggard to one of the most rapidly growing economies in the world? Its sluggish economic development had once been pejoratively described as the “Hindu rate of growth.” Industrial modernization and the so-called green revolution could muster a mere 3.4 percent average annual rate of growth between 1956 and 1974, at a time when many Asian economies were booming. But between 1975 and 1990, the country's economic growth accelerated at a rate higher than 5 percent and then increased to more than 6 percent after 1992. Subsequently, the Indian economy grew at 8.8 percent between 2003 and 2007, and thereby transformed itself into one of the fastest- growing economies in the world along with China. The World Bank–International Monetary Fund (IMF) Annual Meeting in Singapore in 2006 was dedicated to the rise of China and India. In the aftermath of the global financial crisis, India continued to grow more rapidly (6.7% during 2008–9) than all the major Asian economies, except China.
To address these questions, it is necessary to trace how India embarked upon this growth path. Its policy makers gradually deregulated private-sector investment after 1975. Deregulation from the mid-1970s needs to be understood in the context of a political and economic environment that had produced one of the most highly regulated economies in the world. The phenomenon of industrial deregulation was consolidated in the 1980s.
- Type
- Chapter
- Information
- India Since 1980 , pp. 60 - 108Publisher: Cambridge University PressPrint publication year: 2011
References
, “When Did the ‘Hindu’ Rate of Growth End?” Economic and Political Weekly 41:19 (May 13, 2006): 1885–90Google Scholar
, “Structural Breaks in Indian Macroeconomic Data,” Economic and Political Weekly 38:41 (October 11, 2003): 4312–15Google Scholar
, India: The Emerging Giant (New Delhi and New York: Oxford University Press, 2008), 80–1Google Scholar
and , “From ‘Hindu Growth’ to Productivity Surge: The Mystery of the Indian Growth Transition,” The IMF Working Paper 04:77 (Washington, DC: International Monetary Fund, 2004): 3–39Google Scholar
, “The Politics of Economic Growth in India, 1980–2005: Part 1,” Economic and Political Weekly 41:13 (April 1, 2006): 1251–9Google Scholar
and , India: Macroeconomics and Political Economy (New Delhi: Oxford University Press, 1994), 180–91CrossRefGoogle Scholar
, “Political Economy of Reforms,” in The Oxford Companion to Politics in India, ed. and (New Delhi: Oxford University Press, 2010), 483–98Google Scholar
, The Political Economy of Development in India (Oxford: Basil Blackwell, 1984), 40–59Google Scholar
, “A Critique of the Passive Revolution,” in State and Politics in India, ed. (New Delhi: Oxford University Press, 1997), 45–87Google Scholar
, “Embedded Particularism: India's Failed Developmental State,” in The Developmental State, ed. (Ithaca, NY: Cornell University Press, 1999), 306–34Google Scholar
, The Myth of the Shrinking State (New Delhi: Oxford University Press, 2009), 70–107CrossRefGoogle Scholar
, Political Economy of Policy Reform in Developing Countries (Cambridge, MA: MIT Press, 1995), 37–51Google Scholar
, India's Political Economy: 1947–2004 (New Delhi: Oxford University Press, 2005), 70–7Google Scholar
, The Life and Times of G. D. Birla (New Delhi: Oxford University Press, 2003), 305–16Google Scholar
, “‘A Mighty Adventure’: Institutionalizing the Idea of Planning in Post-colonial India,” Modern Asian Studies 43:4 (2009): 939–78CrossRefGoogle Scholar
, The Evolution of Economic Policy in India (New Delhi: Oxford University Press, 2003), 230–3Google Scholar
, Democracy, Development and the Countryside (Cambridge: Cambridge University Press, 1998), 28–47Google Scholar
, “India's Foreign Economic Policies,” in India's Foreign Policy: Retrospect and Prospect, ed. (New Delhi: Oxford University Press, 2009), 301–5Google Scholar
, Transcript of Interview with Robert W. Oliver (Washington, DC: The World Bank Oral History Program Archives, July 24–25, 1986), 16–28Google Scholar
, “Cycles in Indian Economic Liberalization, 1966–1996,” Comparative Politics 31:1 (October 1998): 49–50CrossRefGoogle Scholar
, “India's Aborted Liberalization – 1966,” Pacific Affairs 73:3 (Fall 2000): 382–9CrossRefGoogle Scholar
, India's Green Revolution: Economic Gains and Political Costs (Princeton, NJ: Princeton University Press, 1971)Google Scholar
and , In Pursuit of Lakshmi: The Political Economy of the Indian State (Chicago: University of Chicago Press, 1987), 312–92Google Scholar
, “Agriculture and Poverty Reduction,” in Oxford Handbook of Agriculture, ed. Shovan Ray (New Delhi: Oxford University Press, 2007), 116–17Google Scholar
, “Public Law 480 and Policies of Self-Help and Short-Tether,” in The Regional Imperative, ed. Lloyd I. Rudolph and Susanne H. Rudolph (Atlantic Highlands, NJ: Humanities Press, 1980), 232–3Google Scholar
, “Explaining Changing Patterns of Party-Voter Linkages in India,” in Patrons, Clients, and Policies, ed. Herbert Kitschelt and Steven I. Wilkinson (New York: Cambridge University Press, 2007), 113–18Google Scholar
, Democracy and Development in India (New Delhi: Oxford University Press, 2009), 23–42Google Scholar
, Selected Speeches and Writings, vol. 4 (New Delhi: Publications Division of the Ministry of Information and Broadcasting, November 1985)Google Scholar
, “The Indian Economy,” in The Indian Economy, ed. , and (New Delhi: Oxford University, 1988), 13–14Google Scholar
(chair), Report of the Committee on Import and Export Policies (New Delhi: Ministry of Commerce, 1978)Google Scholar
, Report of the Committee on Controls and Subsidies (New Delhi: Ministry of Finance, 1978)Google Scholar
(chair), Report of the Committee on Trade Policy (New Delhi: Ministry of Commerce, 1984)Google Scholar
(chair), Report on Industrial Licensing and Related MRTP Aspects (New Delhi: Ministry of Finance, 1985)Google Scholar
, “Politics of Economic Liberalization in India,” World Development 17:3 (1989): 308CrossRefGoogle Scholar
, Productivity and Growth in Indian Manufacturing (New Delhi: Oxford University Press, 1991)Google Scholar
and , “Comparative Productivity Performance in Manufacturing in South and East Asia,” Oxford Development Studies 27:1 (1999): 57–79CrossRefGoogle Scholar
, Democratic Politics and Economic Reform in India (Cambridge: Cambridge University Press, 1999)Google Scholar
, “Liberalization and Business Lobbying in India,” in India's Economic Transition, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), 417–20Google Scholar
, “Economic Liberalisation and the Indian State,” Third World Quarterly 7:4 (1985): 742–57CrossRefGoogle Scholar
, “Economic Liberalization and India's Political Economy: Towards a Paradigm Synthesis,” Journal of Commonwealth and Comparative Politics 31:3 (November 1993): 1–31CrossRefGoogle Scholar
, “Political Structure and Change in the International Economic Order,” in Antinomies of Interdependence, ed. John G. Ruggie (New York: Columbia University Press, 1983), 458–9Google Scholar
, , and , “The Evolution of ‘Homegrown’ Conditionality,” Journal of Development Studies 40:6 (August 2004): 59–76CrossRefGoogle Scholar
, Silent Revolution: The International Monetary Fund 1979–89 (Washington, DC: International Monetary Fund, 2001), 709–17Google Scholar
, “On Taking India into the Twenty-First Century,” Modern Asian Studies 21:2 (1987): 216–18CrossRefGoogle Scholar
, , and , The Structure of Indian Industry (New Delhi: Oxford University Press, 2004), 281–96Google Scholar
, “India's Telecommunications Policy,” Telecommunications Policy 20:1 (January 1996): 11–17CrossRefGoogle Scholar
, Between Dependency and Autonomy: India's Experience with the International Computer Industry (Berkeley: University of California Press, 1984), 16–52Google Scholar
, Rethinking the Developmental State (New Delhi: Oxford University Press, 1999), 126–41Google Scholar
, “Bangalore,” in Mukherji, India's Economic Transition, 361–9
, “Farmer's Movements,” in Social Movements in India, ed. Raka Ray and Mary F. Katzenstein (New Delhi: Oxford University Press, 2005), 185–90Google Scholar
, Imagining India: Ideas for the New Century (New Delhi: Penguin Allen Lane, 2008), 196–9Google Scholar
, “Universalizing Elementary Education,” in Universalizing Elementary Education in India (New Delhi: Oxford University Press, 2009), 41–50Google Scholar
, , and , “Understanding Government Failure in Public Health Services,” Economic and Political Weekly 42:40 (October 6, 2007): 4049–57Google Scholar
, The Politics of Health in India (Berkeley: University of California Press, 1988), 129, 143–88Google Scholar
, “Decline of a Social Order,” in Politics in India, ed. Sudipta Kaviraj (New Delhi: Oxford University Press, 1997), 370–82Google Scholar
and , An Intelligent Person's Guide to Liberalization (New Delhi: Penguin Books, 1996), 24–30Google Scholar
, “Theory and Practice of Development,” in India's Economic Reforms and Development, ed. Isher J. Ahluwalia and I. M. D. Little (New Delhi: Oxford University Press, 1998), 73–84Google Scholar
, “Explaining Economic Liberalization in India,” World Development 28:2 (2000): 268–71Google Scholar
, “Understanding the Rise and Transformation of Business Collective Action in India,” Business and Politics 7:2 (2005): 1–27CrossRefGoogle Scholar
and , Building India with Partnership: The Story of CII (New Delhi: Penguin Books, 2006), 139–87Google Scholar
and , Understanding Reforms: Post-1991 India (New Delhi: Oxford University Press, 2007), 116–25Google Scholar
and , “India's Shifting Trade Policy,” in Asia's New Institutional Architecture, ed. Vinod K. Aggarwal and Min Gyo Koo (Heidelberg, Germany: Springer-Verlag, 2008), 215–58CrossRefGoogle Scholar
, “The Politics of Telecommunications Regulation: State-Industry Alliance Favoring Foreign Investment in India,” Journal of Development Studies 44:10 (November 2008): 1405–23CrossRefGoogle Scholar
, “Interests, Wireless Technology and Institutional Change: From Government Monopoly to Regulated Competition in Indian Telecommunications,” The Journal of Asian Studies 68:2 (May 2009): 491–517CrossRefGoogle Scholar
, “Regulation and Infrastructure Development in India,” World Bank Consultation Paper (New Delhi: The World Bank, 2008): 16–28Google Scholar
, “Markets and Manu,” CASI Working Paper Series, Number 08–01 (Philadelphia: University of Pennsylvania, 2008): 24–8Google Scholar
, , , , , and , “Agrarian Change and Social Mobility in Tamil Nadu,” Economic and Political Weekly 43:45 (November 8, 2008): 52–60Google Scholar
and , “Agriculture in the Reforms Regime,” in Agrarian Crisis in India, ed. and (New Delhi: Oxford University Press, 2009), 3–43Google Scholar
, , and , “The Right to Information Act 2005: A Social Development Perspective,” in India: Social Development Report: 2008, ed. Hari Mohan Mathur (New Delhi: Council for Social Development and Oxford University Press, 2008), 205–20Google Scholar
, Mahatma Gandhi National Rural Employment Guarantee Act 2005: Report to the People 2nd Feb. 2006–2nd Feb. 2010 (New Delhi: Government of India, 2010), 12, 23, 30–1Google Scholar
, “The Political Economy of India's Malnutrition Puzzle,” IDS Bulletin 40:4 (July 2009): 16–24CrossRefGoogle Scholar
, “Access to the Targeted Public Distribution System: A Case Study of Rajasthan,” Economic and Political Weekly 44:29 (November 1, 2008): 51–6Google Scholar
, “Food and Power in Bihar and Jharkhand,” Economic and Political Weekly 36:34 (August 25, 2001): 3289–95, 3297–9Google Scholar
, “The Political Economy of the Public Distribution System in Tamil Nadu,” in Reinventing Public Service Delivery in India, ed. (Washington, DC, and New Delhi: The World Bank and Sage Publications), 266–93
, “On Kerala's Development Alternatives,” in Indian Development, ed. and (New Delhi: Oxford University Press, 1996), 237–50Google Scholar
, , , , and , “Missing in Action: Teacher and Health Worker Absence in Developing Countries,” Journal of Economic Perspectives 20:1 (Winter 2006): 101–7CrossRefGoogle ScholarPubMed
and , “Teacher Compensation,” India Policy Forum 2006/07 (Washington, DC, and New Delhi: Brookings Institution and Sage Publications, 2007), 123–78Google Scholar
, “Poverty and Democratic Participation Reconsidered,” Comparative Politics38:4 (July 2006): 439–58Google Scholar
and , “Poverty and Inequality in India,” in Globalization and Politics in India, ed. (New Delhi: Oxford University Press, 2007), 408–57Google Scholar
, “State-Level Performance under Economic Reforms,” in Economic Policy Reforms and the Indian Economy, ed. Anne O. Krueger (New Delhi: Oxford University Press, 2002), 91–122Google Scholar
, “Regulation and Infrastructure Development in India: A Comparison of Telecommunications, Ports and Power,” in Public Service Delivery in India, ed. Vikram Chand (New Delhi: Oxford University Press, 2010), 178–225Google Scholar
, The Great Transformation: The Political and Economic Origins of Our Times (Boston: Beacon Press, 1957), 223–58Google Scholar