TY  - JOUR
AU  - Bosworth,Barry
AU  - Collins,Susan M.
AU  - Virmani,Arvind
TI  - Sources of Growth in the Indian Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12901
PY  - 2007
Y2  - February 2007
UR  - http://www.nber.org/papers/w12901
L1  - http://www.nber.org/papers/w12901.pdf
N1  - Author contact info:
Barry Bosworth
Senior Fellow
The Brookings Institution
1775 Massachusetts Avenue
Washington, DC   20036
E-Mail: bbosworth@brookings.edu

Susan M. Collins
Joan and Sanford Weill Dean of Public Policy
Gerald R. Ford School of Public Policy
Weill Hall, Suite 4300
735 South State Street
Ann Arbor, MI   48109-3091
Tel: 734-763-2258
Fax: 734-763-9181
E-Mail: smcol@umich.edu

Arvind Virmani
Principal Advisor
Planning Commission
Yojana Bhawan, Sansad Marg
New Delhi 110001
E-Mail: virmani@nic.in
AB  - 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.
ER  -