Advertisement

Rapid Growth and Limited Structural Transformation: The Growth Episode of 2002–2010

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

Abstract

This chapter discusses the second growth acceleration episode, running from 2002 to 2010, when average per capita growth rates rose to 6.42 per cent. The chapter provides evidence to show that the nature of growth in this episode was significantly different from the previous one, with much of the growth coming from rent-thick and natural resource-based sectors. In the political space, this period is characterized by the rise of regional political parties and increased dependence of the major parties on the former. Due to such political changes and other economic factors, closed deals that enabled illegal sharing of rents between business and political elites became pervasive in the rent-thick sectors. This resulted in high growth rates in these sectors and the aggregate economy.

Keywords

Growth acceleration Closed ordered deals Rentiers 

References

  1. Alfaro, L. and Chari, A. (2009). ‘India Transformed? Insights from the Firm Level 1988–2005’, NBER Working Papers 15448, National Bureau of Economic Research, Inc.Google Scholar
  2. Chand, V. (2006). ‘Reinventing Public Service Delivery in India’, Delhi: Sage Publications.Google Scholar
  3. Comptroller and Auditor General. (CAG, 2011). Report No. -19 of 2010–11 for the period ended March 2010. ‘Performance Audit of Issue of Licences and Allocation of 2G Spectrum’. Department of Telecommunications (Ministry of Communications and Information Technology), available at: http://www.saiindia.gov.in/english/index.html
  4. Gandhi, A., and Walton, M. (2012). ‘Where do India’s Billionaires Get Their Wealth?’, Vol. XLVII, No. 40, October 06, 2012, pp. 1–15.Google Scholar
  5. Gowda, R. and Sridharan, E. (2012). ‘Reforming India’s Party Financing and Election Expenditure Laws’, Election Law Journal, Vol. 11, No. 2, pp. 226–240.Google Scholar
  6. Hidalgo, C., Klinger, L., Barabasi, A-L. and Hausmann, R. (2007). ‘The Product Space Conditions the Development of Nations’, Science, Vol. 307, pp. 482–487.Google Scholar
  7. Nagaraj, R. (2013). ‘India’s Dream Run, 2003–2008: Understanding the Boom and its Aftermath’, Economic and Political Weekly, Vol. XLVIII, No. 20, May 18, 2013, pp. 10–18.Google Scholar
  8. Panagariya, A. (2008). ‘India: The Emerging Giant’, New York: Oxford University Press.Google Scholar
  9. Shah Comission (2012). ‘Final Report on Illegal Mining in the State of Goa’, Government of India.Google Scholar
  10. Thakurta, P.G. and Kaushal, A. (2010). ‘Underbelly of the Great Indian Telecom Revolution’, Economic and Political Weekly, December 4, Vol. XLV, No. 49, pp. 49–55.Google Scholar
  11. Varshney, A. (1999). ‘Mass Politics or Elite Politics: India’s Reforms in Comparative Perspective’, in Sachs, J.D., Varshney, A. and Bajpai, N. (eds.), India in the Era of Economic Reforms, Delhi: Oxford University Press.Google Scholar

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

Personalised recommendations