Abstract
The first episode of growth acceleration in India covers the period from 1993 to 2001 and is discussed in this chapter. The average per capita growth rate in this episode went up to 4.15 per cent compared to 1.86 per cent in the previous episode. In the political space, this period witnessed a complete transformation in the cognitive maps of the political elite that led to significant reforms in economic policies, particularly in industrial licensing and import controls. These policy changes reduced the role of the bureaucratic machinery in determining the outcome of deals, resulting in both more ordered and more open deals, energizing the magician and workhorse sectors. As a result, growth increased sharply in less rent-thick sectors like manufacturing, information technology and hotels and restaurants.
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Kar, S., Sen, K. (2016). Onset of High Growth: The Growth Episode of 1993–2001. In: The Political Economy of India's Growth Episodes. Building a Sustainable Political Economy: SPERI Research & Policy. Palgrave Pivot, London. https://doi.org/10.1057/978-1-352-00026-9_4
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DOI: https://doi.org/10.1057/978-1-352-00026-9_4
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