India gearing up for growth

Assembly line workers, working on the 'world's cheapest car' the Tata Nano, are seen at the new Nano plant at Sanand, some 40 kms. from Ahmedabad, on June 2, 2010. (Photo: Sam Panthaky/AFP)

Author: Veeramani Choorikkadan, IGIDR, Mumbai, and ANU

India’s growth during the last two decades has failed to transfer surplus labour away from the agriculture sector. Agriculture remains a disproportionate source of Indian employment—it is responsible for about 18 per cent of India’s GDP but employs about 60 per cent of the Indian labour force. This over-concentration on agriculture is unsustainable, and is closely related to idiosyncrasies in India’s pattern of growth.

So what has driven Indian growth over the past two decades? Read more…