India in the 1980s and 1990s: A Triumph of Reforms

38 Pages Posted: 13 Feb 2006

See all articles by Arvind Panagariya

Arvind Panagariya

University of Maryland - Department of Economics; Columbia University

Date Written: March 2004

Abstract

Bradford DeLong and Dani Rodrik have argued that reforms in India cannot be credited with higher growth because the growth rate crossed the 5 percent mark in the 1980s, well before the launch of the July 1991 reforms. This is a wrong reading of the Indian experience for two reasons. First, liberalization was already under way during the 1980s and played a crucial role in stimulating growth during that decade. Second, growth in the 1980s was fragile and unsustainable. The more systematic and systemic reforms of the 1990s, discussed here in detail, gave rise to more sustainable growth. The paper concludes by explaining why the growth rate in India nevertheless continues to trail that of China.

Keywords: India, reforms, growth, liberalization, 1980s, 1990s

JEL Classification: 019, 024, 053

Suggested Citation

Panagariya, Arvind, India in the 1980s and 1990s: A Triumph of Reforms (March 2004). IMF Working Paper No. 04/43, Available at SSRN: https://ssrn.com/abstract=878866

Arvind Panagariya (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3546 (Phone)
301-405 7835 (Fax)

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

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