NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sources of Growth in the Indian Economy

Barry Bosworth, Susan M. Collins, Arvind Virmani

NBER Working Paper No. 12901
Issued in February 2007
NBER Program(s):   IFM

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.

download in pdf format
   (278 K)

email paper

This paper is available as PDF (278 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12901

Published:

  • Bery, Suman, Barry Bosworth, and Arvind Panagariya. India Policy Forum 2006/07. Los Angeles and London: Sage Publications, 2007.
  • Barry Bosworth & Susan M. Collins & Arvind Virmani, 2006. "Sources of Growth in the Indian Economy," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 3(1), pages 1-69. citation courtesy of

Users who downloaded this paper also downloaded these:
Eichengreen and Gupta w16757 The Service Sector as India's Road to Economic Growth
Rodrik and Subramanian w10376 From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition
Kochhar, Kumar, Rajan, and Subramanian w12023 India's Patterns of Development: What Happened, What Follows
Bosworth and Collins w12943 Accounting for Growth: Comparing China and India
Munshi and Rosenzweig w14850 Why is Mobility in India so Low? Social Insurance, Inequality, and Growth
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us