Structural Change in the Indian Economy

Abstract

We analyse the evolution of the Indian economy over the past six decades, particularly identifying structural breaks. We find that usually there has been a gradual change in the indicators of the economy .The growth rate of per capita GDP after falling in the decade mid 60s to mid 70s has been accelerating gradually since then. Since 1991 exports have played an important role in this growth. The various crises and the measures taken to tackle them have not disturbed this evolution, except the policy changes ushered from 1991. The structural breaks we identify do not usually coincide with these crises. The structural breaks suggest certain patterns which are investigated using VAR estimations.