Economics India

Thursday, December 29, 2005

Will Indian Economy Soon Grow At 10%?

Yes, India’s Prime Minister, Dr. Manmohan Singh, hopes so! The Indian economy is currently growing at 7-8% p.a. but there are formidable constraints to sustain even this rate. If the economy must grow at 10%, India will have to work on improving its savings (and investment) rate; increase agricultural productivity and output; and upgrade infrastructure. We will address these questions as we go along and explore if and where the prevailing economic environment hurts and must improve. If you have any thoughts, please do post.

5 Comments:

  • I remember that when I had attended a meeting of the Friends of IIMA in 1989 John Mellor had said that the world will start noticing India if, similar to China, India grows at 10% per annum which was the rate of growth of the Chinese economy in that decade.

    I am glad that now, after about 16 years when I heard such comment, the present PM of India is also saying the same.

    Following again on John Mellor and my work I can see that 10% growth requires simultaneous alleviation of poverty or else India will be continuously pulled down by internal chaos created by class, caste, religion and regional conflicts. To achieve growth with poverty alleviation the GOI should radically change its approach towards agriculture and go back to the policies implemented during the days of late PMs like Shastri and Indira Gandhi.

    Chandrashekhar Ranade
    Retired World Bank Economist,
    Presently a Math Teacher in a Private School.
    Washington DC

    By Blogger Chandrashekhar Ranade, at 2:25 PM  

  • Chandrashekhar: Thanks. You are right ...Dr. Manmohan Singh recognizes that efficiency and equity must be the foundations of growth in India. I hope to talk more about this in future in detail. Please feel free to comment and contribute.

    By Blogger Ramesh G. Deshpande, at 5:37 PM  

  • Fruits of economic growth are in few hands only. The gap between poor and rich has widen. Moreover commies are a big hurdle for any step taken by govt. Unless UPA govt. throws away commies there is no future in global village for India

    By Anonymous Anonymous, at 10:48 PM  

  • Response to Comment No. 3: The anonymous commentor is indeed on the dot. We need to explore where commis are looking for inspiration with both Russia and China having shelved their socialist philosophies and aggressively gone for market-driven development. Of course, no country should abandon a social safety net for the BPLs

    By Blogger Ramesh G. Deshpande, at 10:55 PM  

  • I agree with the earlier commentators. The communists have started destroying the SubContinent from the Himalayas and are moving south. Nepal is already in ruins and no one knows how to solve the problems of Bihar and West Bengal and so on. The events in these regions are a tax on the rest of South Asia. And these very people are ruling Delhi.

    By Anonymous Anonymous, at 2:12 PM  

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