Structural Breaks in Indian Macroeconomic Data

The reforms of the 1980s did increase Indiaâ??s growth rate, but there is little evidence that they affected the rate of expansion in crucial sectors such as agriculture, manufacturing and services. Increased growth was due to a changing composition of GDP, as resources moved away from slow-growing toward faster-growing areas of the economy, more than improvements in sectoral growth rates. While the 1992 break in trade, transport, storage, and communication is encouraging, it is still too early to measure the full effects of the more recent reforms in the 1990s.