India's Growth Story
India has attained much economic success in the past three decades. Yet an economic deceleration in recent years has generated worried commentaries about the country's growth outlook. This paper offers a long-term perspective on India's g...
| Main Authors: | , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/941201538406933607/Indias-Growth-Story http://hdl.handle.net/10986/30508 |
| Summary: | India has attained much economic success
in the past three decades. Yet an economic deceleration in
recent years has generated worried commentaries about the
country's growth outlook. This paper offers a long-term
perspective on India's growth experience. Analyzing the
past five decades of data, the paper notes that growth has
slowly but steadily accelerated, become less erratic, and
been well diversified across sectors and states. A more
granular assessment of the period since the early 1990s
finds that there were three distinct phases of growth: a
period of slow acceleration from 1991 to the early 2000s; a
short period of unusually rapid growth, with certain
features of unsustainability, during 2004-08; and a
corrective slowdown that started with the global financial
crisis in 2008. The slowdown has been reflected most
profoundly in investment, credit, and exports. Even as the
economy has now recovered to a growth rate of 7 to 7.5
percent, durably accelerating it to a higher level will
require a concerted policy momentum that succeeds in
reversing the slowdown in investment, credit supply, and
exports; and support from the global economy. Maintaining
the hard-won macroeconomic stability, implementing a
definite and durable solution to the banking sector issues,
and realizing the expected growth and fiscal dividend from
the Goods and Services Tax are some of the other factors
that can help attain a higher growth rate. |
|---|