Mid-Year Review of the Economy 2006-2007 : India at a Structural Break

Contents: Preface. 1. Introduction and overview. 2. Agriculture growth in India, 1950-2006. 3. Performance of Indian industry, 1960-2006. 4. Investment rate and the sustainability of growth. 5. Infrastructure--a bottleneck? 6. Solving the savings-investment puzzle. 7. India's public finances. 8. Interest rates. 9. Inflation and its implications for monetary policy. 10. Indian economic growth: 1950-2006. 11. Social sector performance. 12. Indian equity markets. 13. Conclusions. Comments on the review by the Discussants. References.

"This book presents evidence on the determinants of economic growth in India. There are two major puzzles about the Indian economy: first, why was there so little acceleration in GDP growth despite wide ranging economic reforms introduced in the two-year period 1991 to 1993. Second, what has caused the acceleration in economic growth since 2003. In addition, the book provides evidence to document that savings, investments, and GDP growth in India reveal unambiguous signs of a structural break and hence rejects the hypothesis that 8 per cent plus GDP growth in India is unsustainable." (jacket)