Singh, Lakhwinder (2007): India’s Economic Growth and the Role of Foreign Direct Investment.
Download (85kB) | Preview
Indian economy has reached in the orbit of high rate of economic growth. She is being widely acclaimed and recognized as an emerging global economic power. The rate of growth recorded during the period 1950-51 to 2004-05 clearly showed a tendency of steady upward trend. However, the decade of eighties emerged as a beginning of the high rate of economic growth or at least a dramatic departure from the past growth performance. This tendency had continued in the 1990s and further growth stimulus has occurred in the early 21st century. This paper attempts to unravel the factors behind high growth trajectory and major structural problems encountered by the Indian economy. The question that begs for an explanation is that is high growth and inflows of FDI solve structural imbalance of Indian economy and will it succeed in improving the lot of bottom section of the Indian economy, which are living in abysmally poor socio-economic conditions in the countryside. The employment elasticity in the agriculture and industrial sector has gone down in the post-reform period, therefore, the creation of employment opportunities will be a gigantic task for the policy makers. FDI has come in the most capital-intensive sectors; therefore, the desired employment opportunities could not be created especially for the manual and the semi skilled labor. High skilled labor gained substantially. That is why high growth is called urban centric and thus has created a wedge between the rural and urban economy. There is urgent need to fill this void. Policy making process has matured in the democratic Indian polity since the independence. It is thus expected that the growing problems will receive mature response and policy will be articulated in such a manner to use FDI the way China has used to enhance economic growth while taking more and more investment to industrialize the rural sector of the Indian economy.
|Item Type:||MPRA Paper|
|Original Title:||India’s Economic Growth and the Role of Foreign Direct Investment|
|Keywords:||Indian economic growth, public policy, structural change, Foreign direct investment|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies
|Depositing User:||Lakhwinder Singh|
|Date Deposited:||22. Dec 2007 17:23|
|Last Modified:||12. Mar 2015 13:54|
Ahluwalia, M. S., 2002. “Economic Reforms in India since 1991: Has Gradualism Worked?” Journal of Economic Perspective, Vol. 16, No.7, 67-88.
Banga, R., 2004. “Impact of Japanese and US FDI on Productivity Growth: A Firm-Level Analysis”, Economic and Political Weekly-Review of Industry and Management, Vol.34, No. 5, 441-447.
Das, D. K., 2004. “Manufacturing Productivity Under Varying Trade Regimes, 1980-2000”, Economic and Political Weekly-Review of Industry and Management, Vol. 34, No. 5, 423-33.
Dasgupta, S. and A. Singh, 2005. “Manufacturing, Services, Jobless Growth and the Informal Economy: Will Services be the New Engine of Indian Economic Growth?” paper presented in the conference on WIDER Thinking Ahead: The Future of Development Economics, June 17-18, 2005, WIDER, Helsinki, Finland.
Gill, A., 2006. “The Punjab Peasant: He Too Dies in Debt”, Mainstream Weekly, Vol. XlIV, No. 24, 19-25.
Government of India, 2005. Handbook of Industrial Statistics 2003-2005, Department of industrial Policy and Promotion, Ministry of Commerce and Industry.
Government of India, 2005-06. Economic Survey 2005-06, Ministry of finance, Government of India, New Delhi: Government of Indian Press.
Nagraj, R., 2006. Aspects of India’s Economic Growth and Reforms, New Delhi: Academic Foundation.
Nayyar, D. 2006. “Economic Growth in Independent India: Lumbering Elephant or Running Tiger?” Economic and Political Weekly, Vol. XLI, No. 15, April 15, 1451-58.
Panagariya, A. 2004. “Growth and Reforms during the 1980s and 1990s”, Economic and Political Weekly, Vol.39, No.25, 2581-94.
Panagariya, A. 2006. “Pro-Market Reforms and Growth”, The Economic Times, Vol.3, No. 126, June 28, Chandigarh.
Ray, S. 2004. “MNEs, Strategic Alliances and Efficiency of Firms: Emerging Trends”, Economic and Political Weekly-Review of Industry and Management, Vol. 34, No. 5, 434-40.
Siddharthan, N.S. and K. Lal, 2004. “Liberalisation, MNE and Productivity of Indian Enterprises”, Economic and Political Weekly-Review of Industry and Management, Vol. 34, No. 5, 448-53. Srinivasan, T. N. and S. Tendulkar, 2003. Reintegrating India with the World Economy, New Delhi: Oxford University Press.
UNCTAD, 2005. World Investment Report 2005: Transnational Corporations and the Internationalization of R&D, New York: United Nations.