Sources of Growth in the Indian Economy / Barry Bosworth, Susan M. Collins, Arvind Virmani.

Format:

Book

Author/Creator:

Bosworth, Barry.

Contributor:

National Bureau of Economic Research.

Collins, Susan M.

Virmani, Arvind.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12901.

NBER working paper series no. w12901

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

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.

Notes:

Print version record

February 2007.