Macro Constraints on India's Economic Growth

Lance Taylor

Indian Economic Review, 1988, vol. 23, issue 2, 145-165

Abstract: Macroeconomic analysis is rather hard for a diverse and vast country like India. At any rate a simple model with few equations is unlikely to be meaningful. This paper explores the possibility of putting together several models in order to shed some light on factors that limit economic growth of the Indian economy. In particular, the focus is on factors such as savings, external constraints, agricultural growth, inflation and internal finance. The paper argues that the Indian economy does not appear to be supply-constrained in an aggregative sense. Raising of public investment in case the corresponding revenue raising also is feasible is obviously desirable. Investment in agriculture should, for several reasons, be a high priority. Exports-led growth is another strong possibility for India but one should not underestimate various costs that the economy would have to bear in the short run. For several other reasons too this strategy of export-led growth is not painless. Given the risk aversion of policy makers and economic agents it is safe to predict that India will continue to move along a path characterised by a growth rate lower than what it is capable of.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:23:y:1988:i:2:p:145-165

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().