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Sources of Growth in the Indian Economy

Author

Listed:
  • Barry Bosworth

    (Brookings Institution)

  • Susan M. Collins

    (University of Michigan)

  • Arvind Virmani

    (University of Michigan)

Abstract

This paper empirically examines India's economic growth experience during 1960-2004, focusing on the post 1973 acceleration. Careful attention is paid to data quality. The analysis focuses on two unusual dimensions of India's experience -- the concentration of growth in services production, and the modest levels of human and physical capital accumulation. A growth accounting analysis disaggregates by major sector, and highlights implications for aggregate productivity growth of the reallocation of resources out of agriculture to more productive activities in industry and services. But concerns are raised that growth in services may be overstated. India will need to broaden its current expansion to provide manufactured goods for the world market and jobs for its large pool of low-skilled workers. Increased public saving, as well as a rise in foreign saving -- particularly FDI -- could augment the rising household saving and support the increased investment necessary to sustain rapid growth.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Barry Bosworth & Susan M. Collins & Arvind Virmani, 2006. "Sources of Growth in the Indian Economy," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 3(1), pages 1-69.
    • Handle: RePEc:bin:indiap:v:3:y:2006:i:2006-1:p:1-69
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    File URL: http://www.brookings.edu/press/Books/2007/indiapolicyforum20062007.aspx
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    India; macroeconomics; growth; economy; China; manufacturing; physical capital; education;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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