ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Some Explorations into India's Post-Independence Growth Process, 1950/51-2002/03: The Demand Side

Aggregate demand growth in India during 1950-51 to 2002-03 has been consumption-driven at the margin, with the relative contribution of consumption having risen in the high growth phase covering the period 1980-81 to 2002-03. In this phase, consumption growth accelerated and the gap between rates of growth of investment and consumption narrowed substantially. Further, in this high growth phase, aggregate demand growth was consumption-driven not because of increases in the private final consumption expenditure ratio but because of increases in the government final consumption expenditure ratio.

SPECIAL ARTICLE

Some Explorations into India’s Post-Independence Growth Process, 1950/51-2002/03: The Demand Side

Mritiunjoy Mohanty, V N Reddy

Aggregate demand growth in India during 1950-51 to 2002-03 has been consumption-driven at the margin, with the relative contribution of consumption having risen in the high growth phase covering the period 1980-81 to 2002-03. In this phase, consumption growth accelerated and the gap between rates of growth of investment and consumption narrowed substantially. Further, in this high growth phase, aggregate demand growth was consumption-driven not because of increases in the private final consumption expenditure ratio but because of increases in the government final consumption expenditure ratio.

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