Sunday, February 28, 2016

Economic Survery -Vol 1 - Chap 1

1.Indian Economy has done well despite 1. Global slowdown and 2. Sucessive poor rainfall.

2. While World economy is growing at less than 4% India continues to grow at less than 8%

To achieve the 8-10 % growth India push from 3 fronts

a. Making investment friendly climate and providing exit strategy for corporates ie new Bankruptcy law, rehabilitating stalled project, Guidelines for exit

b. Major Investment in People and health. Broadly delivery of essential services. Going as per 14th Finance commission recommendation. Center should focus more on improving policies, strengthening regulatory institutions, and facilitating cooperative and competitive federalism. At the same time States deliver schemes

c. Agriculture. Crop Insurance schemes. Competitive Federalism . States who had elected three times done well in agriculture.

India's Potential Growth

1. Through Past growth 
2. Projecting underlying drivers of growth

3rd method would be more suitable. " Correlation between Institutions and Growth " . India and China are outliers and they could convergence. 





Based on the convergence speed, the growth will be affected.

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