While India’s per capita income is converging towards that of the richer countries, inequality has drifted up.
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India began its regulatory reforms in the early 1990s, reducing state involvement through the privatisation of companies, by putting in place independent regulatory mechanisms to boost competition and private-sector-led growth, and to strengthen consumer protection. But the reform efforts lacked coherence and, more recently, have stalled.
In recent years, India has enjoyed one of the highest growth rates worldwide, weathering the global financial crisis better than many other countries.
This paper uses the OECD’s Going for Growth framework, as well as other available evidence linking policies to economic performance, to identify key structural policy challenges in the BIICS for the years ahead.