Indian Economic Growth & Changes – MBA Finance
Indian Economic Growth & Changes – MBA Finance Introduction Economists excel at conceptualizing abstract economic models and applying them empirically. This also applies to growth models. The most basic interpretation of growth is that capital investment is what matters: more capital per worker means more output per worker, which is what economic growth is all about. This viewpoint underpinned the “Mahalanobis model,” which influenced Indian policymaking and implementation in the years following independence. The public sector had to lead the process of increasing investment, which was the key conceptual driver in putting the abstract ideas into practice. There is some agreement among economists that this approach was not optimal in a variety of policy dimensions, with evidence for sub optimality including high incremental capital-output ratios or, equivalently a low marginal productivity of capital. For More Details About Indian Economic Growth & Changes – MBA Finance ...