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India's Patterns of Development: What Happened, What Follows

65 Pages Posted: 27 Apr 2006  

Kalpana Kochhar

International Monetary Fund (IMF)

Utsav Kumar

Asian Development Bank

Raghuram G. Rajan

University of Chicago - Booth School of Business; International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Arvind Subramanian

International Monetary Fund (IMF); Center for Global Development

Ioannis Tokatlidis

International Monetary Fund (IMF)

Date Written: February 2006

Abstract

India seems to have followed an idiosyncratic pattern of development, certainly compared to other fast-growing Asian economies. While the emphasis on services rather than manufacturing has been widely noted, within manufacturing India has emphasized skill-intensive rather than labor-intensive manufacturing, and industries with typically higher average scale. We show that some of these distinctive patterns existed even prior to the beginning of economic reforms in the 1980s, and argue they stem from the idiosyncratic policies adopted soon after India's independence. We then look to the future, using the growth of fast-moving Indian states as a guide. Despite recent reforms that have removed some of the policy impediments that might have sent India down its distinctive path, it appears unlikely that India will revert to the pattern followed by other countries.

Suggested Citation

Kochhar, Kalpana and Kumar, Utsav and Rajan, Raghuram G. and Subramanian, Arvind and Tokatlidis, Ioannis, India's Patterns of Development: What Happened, What Follows (February 2006). NBER Working Paper No. w12023. Available at SSRN: https://ssrn.com/abstract=883073

Kalpana Kochhar

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Utsav Kumar

Asian Development Bank ( email )

6 ADB Avenue
Central and West Asia Department
Mandaluyong City
Philippines

HOME PAGE: http://works.bepress.com/kumarutsav/

Raghuram G. Rajan (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-4437 (Phone)
773-702-0458 (Fax)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
773-702-9299 (Phone)
773-702-0458 (Fax)

Arvind Subramanian

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Center for Global Development

2055 L St. NW
5th floor
Washington, DC 20036
United States

Ioannis Tokatlidis

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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