August 07, 2020

Opinion | A development story with an epilogue yet to be written

Niranjan Rajadhyaksha writes in Mint about India's quest to structurally transform its economy.




"However, India’s structural transformation story has some successes as well. One of them that is worth mentioning is that it has a far more sophisticated economy than suggested by its income level. India is 42nd among the 133 economies included in the Economic Complexity Index, which is no mean achievement for a country that is 107th in terms of per capita income. The old Indian planning strategy has seen ample failures, but its big success was the creation of a diversified industrial structure. For example, in the high noon of Nehruvian planning between 1955 and 1965, industrial production growth averaged 8% a year, far outpacing the rest of the economy. More important in the context of this column, production of capital goods went up by 16% a year while intermediate goods production growth averaged 8% a year."


Read the complete article here.

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