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India's Pattern of Development; What Happened, What Follows?

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Listed:
  • Arvind Subramanian
  • Raghuram Rajan
  • Ioannis Tokatlidis
  • Kalpana Kochhar
  • Utsav Kumar

Abstract

India has followed an idiosyncratic pattern of development, certainly compared with other fast-growing Asian economies. While the importance of services rather than manufacturing is widely noted, within manufacturing India has emphasized skill-intensive rather than laborintensive manufacturing, and industries with higher-than-average scale. Some of these distinctive patterns existed prior to the beginning of economic reforms in the 1980s, and stem from the idiosyncratic policies adopted after India's independence. Using the growth of fastmoving Indian states as a guide, we conclude that India may not revert to the pattern followed by other countries, despite reforms that have removed some policy impediments that contributed to India's distinctive path.

Suggested Citation

  • Arvind Subramanian & Raghuram Rajan & Ioannis Tokatlidis & Kalpana Kochhar & Utsav Kumar, 2006. "India's Pattern of Development; What Happened, What Follows?," IMF Working Papers 06/22, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:06/22
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    References listed on IDEAS

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    More about this item

    Keywords

    Development; Export diversification; Manufacturing; India; Services; Skilled labor; Diversification; Decentralization; Liberalization; Labor Intensity; Skill Intensity; Scale; employment; employment shares; labor productivity; Macroeconomics: Production; Industry Studies: Services: General; Macroeconomic Analyses of Economic Development; Economic Growth and Aggregate Productivity: General;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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