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

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


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.


Growth acceleration Closed ordered deals Rentiers 


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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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