Unleashing India’s Growth Potential
IMF Working Papers, April 21, 2023
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- Unleashing India’s Growth Potential
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Bibliographic details
- Authors: Shinya Kotera, TengTeng Xu
- Published: April 21, 2023
- Series: IMF Working Papers
- Pages: 26
Overview and Purpose
- Title: Unleashing India’s Growth Potential
- Authors: Shinya Kotera, TengTeng Xu
- Publication date: April 21, 2023
- Publication series: IMF Working Papers, Working Paper No. 2023/082
- Pages: 26
- Stock No: WPIEA2023082
- ISBN: 9798400240898
- ISSN: 1018-5941
- Summary: The paper analyzes drivers of India’s growth over the past five decades and considers baseline and upside scenarios for India’s medium-term potential growth using a production function approach. It assesses the pandemic’s impact on key factors of production and implications for medium-term growth. The paper emphasizes that successful implementation of wide-ranging structural reforms could help support productivity and potential growth over the medium term.
- Keywords: Capital, India, Labor Markets, Pandemic, Potential Growth, Production Function Approach, Productivity, Structural Reforms.
Methodology
- Analytical approach:
- Uses a production function approach to decompose and assess contributions to potential growth.
- Assesses impacts of the pandemic on key factors of production and consequent effects on medium-term growth.
- Scenarios considered:
- Baseline scenario for India’s medium-term potential growth.
- Upside scenario contingent on policy and reform implementation.
Key Findings and Insights
- Historical analysis:
- Examines drivers of India’s growth across the past five decades.
- Pandemic impact:
- The pandemic affected key factors of production and thus has implications for medium-term potential growth.
- Role of reforms:
- Successful implementation of wide-ranging structural reforms could help support productivity and potential growth over the medium term.
Policy Implications and Recommendations
- Structural reforms:
- Implement wide-ranging structural reforms to support productivity gains.
- Medium-term focus:
- Policies should address the pandemic’s effects on capital and labor to restore and enhance potential growth.
- Reform sequencing and breadth:
- Broad and successful reform implementation is linked to upside potential for medium-term growth.
Document and Access Notes
- Format: IMF Working Papers (research in progress; views expressed are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management).
- Citation format provided in source: Shinya Kotera, and TengTeng Xu. Unleashing India’s Growth Potential, (USA: International Monetary Fund, 2023) accessed 9/5/2026.
Source: Unleashing India’s Growth Potential, IMF Working Paper No. 2023/082.
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- Working Paper