Which of the following two factors enhanced the growth rate of the Indian economy in the 1980s as per…
In India: The Emerging Giant (2008), economist Arvind Panagariya attributes India's higher growth in the 1980s not merely to a pro-business attitudinal shift (an argument…
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Which of the following two factors enhanced the growth rate of the Indian economy in the 1980s as per Arvind Panagariya?
- Attitudinal change amongst the policymakers
- Export incentives and delicensing for private companies
- Political leadership was deeply skeptical about import-substitution industrialization
- A more realistic exchange rate policy
Answer and explanation
Correct answer A
In India: The Emerging Giant (2008), economist Arvind Panagariya attributes India's higher growth in the 1980s not merely to a pro-business attitudinal shift (an argument made by Rodrik and Subramanian), but specifically to concrete piecemeal policy liberalization measures—including export incentives, industrial delicensing, and OGL expansion for private firms (B)—combined with a more realistic, depreciating real exchange rate policy (D) and fiscal expansion.
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UGC NET Political Science