After three post-independence decades of inadequate progress, India grew at 6 per cent per annum from 1980 to 2002 and at 7.6 per cent from 2002 through 2007. Its rising path has been unique: rather than exporting labour-intensive, low-priced manufactured goods, India relied on its domestic market more than on exports, consumption more than investment, services more than industry and high-tech more than low-skilled manufacturing. Moreover, 30–40 per cent of GDP growth depends on rising productivity rather than on increases in the amount of capital or labour (Rodrik and Subramanium, 2005). Bosworth and Collins (2007) document that, over the period 1993–2004, 2.3 per cent of the growth (out of a total of 6.5 per cent) was accounted for by productivity changes. This suggests that India’s reform processes has been able to obtain results in terms of better incentives and competition, inducing improvements in productivity.


Commercial Bank Foreign Ownership Private Bank Foreign Bank Statistical Table 
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© S. Chiarlone and S. Ghosh 2009

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  • S. Ghosh

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