It is arguable whether the balance of payments is the most important factor limiting the rate of India’s economic development, but it will probably at least be agreed that it is α major limiting factor. Shortage of foreign exchange is certainly holding up production quite seriously at present and there is a danger that it will continue to restrict output and the rate of growth during the Third Plan and, looking further ahead, in the Fourth and the Fifth.2
KeywordsForeign Exchange National Income Capital Good Export Subsidy Multiple Shift
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