The Stroll, the Trot, and the Sprint of the Elephant

Abstract

Abstract This chapter shows three distinctive growth episodes in India’s recent history. First, a period of slow growth from 1950 to 1992, due to the presence of a dominant political party, a prevalence of powerbrokers, and a disordered closed deal environment which slowly changed in the 1980s. The second period of growth from 1993 to 2002 was spurred by a move to a competitive political settlement, a growing trust between economic and political elites which opened up the deal space, and a move towards more magicians within the economy. The third period of mixed growth was caused by the rise of regional parties, the increased influence of the magicians and powerbrokers within the economy, and a shift to a more closed deals space. This analysis highlights the influence of feedback effects in India, both positive and negative, and how each distinctive period helped shape the next stage of growth.