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Onset of High Growth: The Growth Episode of 1993–2001

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

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.

Keywords

Growth acceleration Open ordered deals Magicians Economic reforms 

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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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