Sustaining India's Growth Miracle

Sustaining India's Growth Miracle

JAGDISH N. BHAGWATI
CHARLES W. CALOMIRIS
Copyright Date: 2008
Pages: 288
https://www.jstor.org/stable/10.7312/bhag14366
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  • Book Info
    Sustaining India's Growth Miracle
    Book Description:

    The economy of India is growing at a rate of 8 percent per year, and its exports of goods and services have more than doubled in the past three years. Considering these trends, economists, scholars, and political leaders across the globe are beginning to wonder whether India's growth can be sustained.

    The contributors to this volume analyze the forces behind India's emerging role as a world economic player and identify the hidden weaknesses that, if unaddressed, may slow the country's growth. Chapters suggest how to transform India's primarily rural population into a gainfully employed modern sector; methods to achieve fiscal sustainability and consolidation; infrastructure bottlenecks, especially in terms of finite energy resources; and, given the country's complex electoral government and global political position, the obstacles toward effecting policy reform.

    Sustaining India's Growth Miracle is a valuable resource for practitioners, policymakers, students, and scholars. It tackles issues from political, economic, and academic perspectives, and the concluding chapter, a talk given by the commerce and industry minister of India, discusses the country's position as a world power, outlining several reasons for its success and exploring the difficulties that lie ahead.

    eISBN: 978-0-231-51294-7
    Subjects: Political Science, History, Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. List of Acronyms
    (pp. vii-x)
  4. EDITORS’ ACKNOWLEDGMENTS
    (pp. xi-xiv)
  5. INTRODUCTION
    (pp. 1-8)
    Jagdish N. Bhagwati and Charles W. Calomiris

    Beginning in the second half of the 1980s and especially during the 1990s and beyond, India’s development strategy underwent a fundamental transformation. Government controls over a variety of economic decisions were relaxed, markets were given greater play, and the door to imports was opened considerably wider. These reforms placed the economy on a higher growth path, shifting the growth rate first to 6 percent per year and more recently, during the last four years, to the 8–9 percent range. The central question on the minds of many observers of India today is whether India can sustain this upward shift...

  6. CHAPTER 1 Transforming India
    (pp. 9-52)
    Arvind Panagariya

    India’s economy has been growing at a rate of more than 6 percent since the late 1980s. In the last three years, the growth rate has been even higher—8 percent—bringing it close to East Asian levels. While skeptics argue that this shift merely represents a strong upswing in the business cycle, optimists see it as representing an upward movement in the trend growth rate. If optimists are right and the 8 percent growth rate is sustained, possibly even accelerated, we can truly begin to see the emergence of a giant economy in India. Even at the 8 percent...

  7. CHAPTER 2 Unfinished Reform Agendum: Fiscal Consolidation and Reforms
    (pp. 53-114)
    T. N. Srinivasan

    The growth rate of real GDP (at factor cost) of India increased significantly in the 1980s (the precise initial date of the increase is unimportant) compared to the previous decades. With the rate of growth of population steadily going down, the rate of growth of real per-capita GDP more than tripled from 1.5 percent per year during 1950–80 to 4.7 percent since then. In the three years ending in March 31, 2006, the rate of growth of real GDP per capita was a little under 6 percent, with it rising even higher to 7.7 percent in 2006–7. Table...

  8. CHAPTER 3 Reforming the Indian Electricity Supply Industry
    (pp. 115-165)
    Frank A. Wolak

    More than fifteen years of experience with electricity-industry restructuring in both industrialized and developing countries has demonstrated that success is extremely elusive. Even countries now offered as examples of successful restructuring processes have required significant regulatory intervention at some point during their development. The England and Wales electricity supply industry required several rounds of forced divestitures of generation capacity from the two dominant firms, and the original electricity-pool market design was abandoned and the New Electricity Trading Arrangements (NETA) implemented in early 2001. The Chilean electricity industry experienced shortages that required electricity curtailments for up to three hours per day...

  9. CHAPTER 4 The Indian Software Industry and Its Prospects
    (pp. 166-214)
    Ashish Arora

    India’s emergence as a major exporter of software services in less than a decade and a half has excited debate about the causes of its success and ignited hopes for similar success in other industries. The subsequent growth of exports of other business services appears to validate the belief of some observers (including myself ) that India’s software success could have broader benefits for the Indian economy.

    Despite this, there is a perennial undercurrent of concern about the prospects of the Indian software industry. The causes for concern are not difficult to find. Wages for software professionals have consistently risen...

  10. CHAPTER 5 India: Past, Present, and Future
    (pp. 215-239)
    Jagdish Bhagwati, Arvind Panagariya, Ronen Sen, Arun Shourie and Frank Wisner

    Our distinguished group of commentators will focus on two issues. First, they will discuss Indian’s economy: it’s past performance and future prospects. In the second part, we turn to U.S.-India relations: past, present, and future. For the first part, Jagdish Bhagwati and Arun Shourie will offer remarks and Ambassadors Ronen Sen and Frank Wisner will serve as commentators.

    Then, for the second part, we will reverse the rolls, with Ambassador Sen and Ambassador Wisner giving principal remarks and Professor Bhagwati and Mr. Shourie offering brief comments.

    Turning to the first part of the program, economics, I note that after performing...

  11. CHAPTER 6 India: An Emerging Giant
    (pp. 240-248)
    the Honorable Kamal Nath

    It is an honor and a privilege to be in a program with Professors Bhagwati and Panagariya and such eminent people here. For the last two days, or at least today, what’s been discussed is the India story. And when we talk about the India story I’m reminded of what Albert Camus once said—that great works are often born on a street corner or in a restaurant’s revolving door. All good things have a ridiculous beginning. Well, fifteen years ago India embarked on reforms, and as though to prove Camus right, our reform journey started on a rather inauspicious...

  12. CONTRIBUTORS
    (pp. 249-256)
  13. Index
    (pp. 257-274)