Insight :: Economics

The real engines of India's economic growth

India's growth rate in the 1st calendar quarter of 2009 fell to 5.8%, after multiple years of greater than 8% annual growth. This has lead to a clamor in the media about the need to bring back foreign investments.

Professor R. Vaidyanathan, says that we might be missing the woods for the trees.

Conventional wisdom is that liberalisation and resulting inflow of foreign capital to corporate India are the primary reasons for India's rapid growth in the past decade. The recent fall in the growth rate has led to much discussion in business media and economic circles on the stimulus required for corporate India.

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