World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data
On Economic Growth and Domestic Saving in India
Tarlok Singh
World Economics, March 2011

This study examines the economic growth and domestic saving in India. The onset of gradual economic reforms since the 1980s provided some fillip to growth, and the momentum was carried forward through the adoption of a wide-ranging structural adjustment program since the beginning 1990s. The sustainability of an accelerated growth trajectory hinges heavily on the acceleration of saving and investment and the improvements in productivity. While foreign direct investment, liberalization of trade and the globalisation of goods and financial markets have well-documented gains, the accrual of these gains is contingent on the acceleration of productivity to a threshold level where the firms can effectively compete for market share in both domestic and international markets. Gobalization is unlikely to take developing economies out of low level equilibrium traps of underdevelopment, if it is not accompanied by the institutional reforms, development of adequate infrastructure, unleashing of productivities, development of efficient financial sector, and the improvements in the competitiveness of import-competing industries in the domestic and export-oriented industries in the international markets.
Download paper

Related thinking:
    From Stellar Growth to Underperformance
Dilip K. Das
World Economics, September 2013
    Asset Poverty in India
Swati Dutta
World Economics, September 2013
    Industrial Rebalancing is Already Here, But Can it Continue?
Nate Taplin
World Economics, June 2013




© Copyright Economic & Financial Publishing 2014