India in the 1980s and the 1990s: A Triumph of Reforms

  • Arvind Panagariya
Part of the Procyclicality of Financial Systems in Asia book series (IMF)


While public opinion in India continues to move toward the view that liberalization has been good, that more of it is needed, and that its pace must be accelerated, the view in some scholarly and policy circles has turned skeptical. It is being argued that the average annual growth rate of gross domestic product (GDP) hit the 5.6 percent mark in the 1980s, well before the launch of the July 1991 reforms. Moreover, the growth rate in the 1990s was not much higher. Therefore, liberalization cannot be credited with having made a significant difference to growth in India.2


Foreign Direct Investment Gross Domestic Product Real Exchange Rate Total Factor Productivity Growth Average Annual Growth Rate 
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© International Monetary Fund 2005

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  • Arvind Panagariya

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