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Stagnation and a Nascent Recovery: The Growth Episode of 1950–1992

  • Sabyasachi Kar
  • Kunal Sen
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Part of the Building a Sustainable Political Economy: SPERI Research & Policy book series (SPERIRP)

Abstract

This chapter analyses the first growth episode, running from the 1950s to 1992. It shows that in terms of various indicators, this long episode was mostly characterized by economic stagnation, with a nascent recovery in the last decade, that is, the eighties. In the political space, this long period saw an evolution from a dominant party system to minority governments and more political contestations. For most of the episode, the predominant position of the Congress party coupled with its socialist ideology resulted in disordered deals that led to low investment, productivity and stagnation. As the political space became more competitive, the political elite turned to the business class for support and this led to more ordered deals between them, resulting in a recovery in the eighties.

Keywords

Stagnation Hindu rate of growth License raj Disordered deals 

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Copyright information

© The Author(s) 2016

Authors and Affiliations

  • Sabyasachi Kar
    • 1
  • Kunal Sen
    • 2
  1. 1.Institute of Economic GrowthUniversity of DelhiDelhiIndia
  2. 2.University of ManchesterManchesterUK

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