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Journal of Economic Literature: Vol. 46 No. 2 (June 2008)

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The Enigma of India

Article Citation

Basu, Kaushik. 2008. "The Enigma of India." Journal of Economic Literature, 46(2): 396-406.

DOI: 10.1257/jel.46.2.396

Abstract

India's high growth over the last fifteen years has inspired several recent books and papers to examine the growth's source and sustainability--the two-volume study by Arvind Virmani being a case in point. This paper evaluates these recent works. It is argued that the cause of the take-off does not fit into any easy ideological category as suggested by Virmani. The current high growth has been achieved in several steps, with distinct factors of propulsion behind each step. There is reason to expect the growth to be sustainable, although destabilizing political tensions will arise from the increasing inequality. The paper also evaluates how India's growth relates to the global economy.

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Authors

Basu, Kaushik (Cornell U)

JEL Classifications

F02: International Economic Order
O11: Macroeconomic Analyses of Economic Development
O17: Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O53: Economywide Country Studies: Asia including Middle East
Q01: Sustainable Development


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