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

Articles By economic growth

India’s Human Development Index

The human development index initiated by the United Nations Development Programme has gained universal acceptance as a measure of human progress. This study constructs a comparable time series of HDI for 15 major states of India for the period 1991–2018. We find both β- and σ- convergence for all the states, with the non-income indices playing a major role in convergence, and a slowdown in the speed of convergence during the post-fiscal reform regime since 2005. Although the trajectories of HDI of different states tend to converge over time, the gap between the levels of HDI of low- and high-performing states has not been reduced significantly.

Foreign Direct Investment, Trade Openness, and Economic Growth

Foreign direct investment has a positive and significant impact on economic growth in the short run, whereas that of trade openness is both in the long and short run. The economic growth of India is caused by FDI, trade openness, and exchange rate, separately as well as together, in the short run. The findings advocate for measures and regulations to manage FDI and prioritise human capital development, financial sector enlargement, and trade expansion as well as improved trade policy reforms to eliminate numerous trade restrictions to ensure sustained long–run economic growth in the country.

Land Regulations and Doing Business in Himachal Pradesh

Land management has a far-reaching effect on growth, distribution of incomes, and spatial spread of economic activities. The governments, therefore, play a crucial role in establishing and supporting an ecosystem for firms by enacting laws and making rules that establish and clarify property rights, reducing the cost of disputes resolution and increasing the predictability of economic transactions. This article attempts to carry out a diagnostic analysis of land laws and practices in Himachal Pradesh and identifies the problem areas for regulatory reforms and makes a case for taking up regulatory impact assessment.

Understanding the Structural Dynamics of Aggregate Demand Components and Economic Growth in India

A significant fluctuation in the growth rate of gross domestic product is observed, which comes along with the fluctuations of other demand components from 1951–52 to 2019–20. Applying autoregressive distributed lag to the co-integration model, and incorporating the structural changes in policies since 1991, it is found that in the long run, out of the five components that significantly influence the aggregate demand and hence the economic growth of India, the private final consumption expenditure plays the most significant role followed by private fixed investment—a 1% increase in the PFCE leads to an average 0.96% increase in the GDP. The result also reveals that the structural policy reforms implemented since 1991 have created the virtuous cycle of economic growth in the economy and should be a policy priority.

Investment Behaviour in India

Most of the investment slowdown debates have been around aggregate investment but disaggregate investment institution- and assets-wise may respond heterogeneously with respect to the macroprudential policy measures. The present study explores the investment dynamics at disaggregate level for 2004–19 in the wake of changing economic environment characterised by active utilisation of monetary and fiscal policies, varying monetary transmission effect, economic uncertainty, business environment, and financial pressures either by credit shortfall or debt overhang.

Dietary Diversity during COVID-19 in India

The article reports the findings on the changing dietary patterns of Indian households during COVID-19, based on an analysis of the Consumer Pyramids Household Survey. The impact of the pandemic on diet composition was most severe for the poor and the deprived, who substituted inferior cereals for expensive cereals and spent lower amounts on nourishing foods such as fruits and vegetables.

FDI, GDP and Regional Disparity

Foreign direct investment reveals the tendency to fl ow to the industrial agglomerates. Some scholars express the concern that the skewed distribution of FDI can worsen the regional disparity. This article reveals that FDI has limited and unexpectedly negative effects on the Indian gross domestic product. Hence, the fear that skewed FDI infl ow can worsen regional disparity stands rejected.