The growth rate of the Indian economy has plummeted sharply from 9 per cent in 2010 to below 5 per cent over 2012−14. It is essential to sustain a growth rate of 8 per cent or more over the next 20 years to eliminate poverty and reach a decent standard of living. There is an urgent need for research on the challenges facing India in reviving and sustaining high rates of economic growth, some of which are related to industrial policy, trade policy, infrastructure bottlenecks, inflation and macroeconomic issues, governance issues, demography and human capital. There is also a need for better industrial and human resource policies, higher investment and savings rates, higher exports and foreign investment inflows. This book studies the importance of growth, the role of industrial policy in sustaining it, and other critical issues regarding ways to revive and sustain higher growth in India across various sectors of the economy.

Studies the question of achieving and sustaining high rates of growth and economic development in India.

This book brings together the latest research findings from leading economists from India and abroad on ways to revive and sustain higher growth rates in India. Divided into five parts, the first part empirically examines the various factors that affect poverty and shows that growth is crucial to poverty reduction. The second part investigates the factors responsible for sustaining industrial growth including skill formation and innovation. Part III analyses the critical role of monetary policy and shows that it is not very effective in the presence of commodity price shocks and supply constraints. It explains why RBI could not effectively control inflation and why the government must play a crucial supporting role in controlling inflation. Part IV then analyses various supply constraints to growth including agriculture, energy security, social and physical infrastructure and discusses how to deal with them effectively. Part V analyses the labour and financial market policies.

The paper reviews and draws lessons from the experience of fast growing economies including a sub-set of these termed High Growth Economies (HGEs) with a decadal rate of over 7 per cent. It then reviews the history of the Indian growth acceleration following the reforms of the 1990s and its future prospects given the recent slowdown. It analysis the potential dangers and reasons for India’s growth slowdown and proposes policy reforms for sustaining fast growth.

Drawing on the OECD’s expertise in comparing country experiences and identifying best practices, this book tailors the OECD’s policy advice to the specific and timely priorities of India, focusing on how its government can make reform happen.

The empirical studies of Indian state economies have largely ignored the inter-dependence of agriculture and industry sectors. The authors explore how this interrelationship translates into the growth stimulus between the two sectors.