1. Sustainability of Economic Growth in India
- Author:
- Rajiv Kumar, Amitendu Palit, and Karan Singh
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- Centre for International Governance Innovation (CIGI)
- Abstract:
- The robust performance of the Indian economy in recent years, with economic growth averaging 8.5%, has generated intense debate regarding India's future economic prospects. Indeed, the future of more than a billion people, many of whom still exist in degrading and unacceptable poverty and deprivation, depends critically on India's ability to grow fast at high rates. This paper, while examining the issue, argues that India's recent economic performance is a result of it's entering a virtuous circle of growth generated by some key structural drivers. The latter include a dynamic private sector, benign external environment and a wellfunctioning democracy. The paper also points out that high growth can be sustained only if necessary policies are adopted for removing binding constraints like poor infrastructure, stagnant agriculture and lack of fiscal space. The paper identifies education as the most critical sector requiring reforms, followed by public goods delivery and labour markets.
- Topic:
- International Relations, Development, and Economics
- Political Geography:
- India and Asia