India Development

Table of Contents

Introduction1

Overview of Indias growth and development4

Difference between growth and development7

Pre-Washington Consensus4

Social reforms by India during 19905

Washington Consensus1

Criticism on Washington Consensus2

Inflation Tax and Budget deficit3

        Public expenditure and Economic Resources5

Marginal tax reforms6

Financial liberalisation and Interest rate 6

Exchange rates and Imports and Exports6

Tariff rates and trade restrictions6

New Ideas and Innovation4

Foreign Entry barrier and comparison to other countries5

State owned Enterprise & Privatisation6

Competition and Regulation6

Property rights and Legal system6

Post-Washington Consensus and Role of Intuitions4

Conclusion4

References4

Appendix4

Introduction

General health of any countries is determined by looking at its growth and development rate. Evaluation of economic growth and development verify the evolution of a country over a certain period of time. Various economist such as Amartya Sen use various development indicators to analyse growth of a country such as the capabilities approach and the role of Institutions by North.

Growth and Development can be seen as an important area to study because evidence shows that improving a nation not only leads to developing the society but also increases the standard of living further creating new jobs and opening employment opportunities and higher productivity (Smith, 2014) which are extremely important in a country like India where unemployment rate is above 5% as seen in Appendix B (Trading Economics, 2015). As it is debated that India is the third largest economy in the world the essay shall discuss the growth and development in India considering various opinions of economist such as North Sen, Romer considering the Washington consensus and the reforms taken by India during such period        

Overview of India’s Growth and Development

The economic condition of India in global world has been the subject of debate in international business and business institutions. India is one of the highly traditional and culturally rich countries of the world. According to Das (2007, p.1) in 1900s India was a slow developing industry in term of financial growth and well as cultural and social growth. Das (2007, p.1) debated that the reason why India had slow economic growth was due to its rigid culture. Between the years 1900-1950, India’s GDP grew on an average of 0.8% per year which was extremely low in comparison to the rich agricultural industry and opportunities available in India. However, as the acceptance of technology and education grew after the period of 1980 India become one of the fastest growing industries in the world by the end of 1900s.