Reflections on India’s Emergence in the World Economy

Abstract

This paper attempts to capture how India embraced the world economy against the backdrop of the evolving domestic and international economic policy environment. We begin with a brief overview of the evolution of India’s development policy framework. Next, we attempt to understand why India failed to join the league of ‘Asian Miracle’ economies that embarked upon a phenomenal growth path during 1960s, 70s and 80s. This is followed by a quantitative presentation of the process of India’s integration with the world economy that was effectively set in motion only after a turnaround in its policy regime in the 1990s. Finally, we conclude that India’s post-colonial policy thrust on public funded higher education and research in science & technology, creating a strong base of human capital and technological capability, acted as the key drivers of India’s economic emergence during the last couple of decades.