Economic Growth, Social Development and Interest Groups

This paper attempts to analyse the relative roles of political institutions and interest groups in policy formulation and the relationship between economic growth and social development. The main conclusions of the study are that while there is excess intervention by government in the sphere of economic activity, state intervention in the social sector is insufficient and ineffective, leading to the prevalence of widespread poverty and deprivation in India. Social capability development is a necessary precondition for the success of economic reforms in the country.