Sources of economic growth in India implied by the seventh five year plan 1985-90

Abstract

Two volumes of the 7th plan released by the government of India have provided a reasonably good empirical base to look into the implicaitons and consistency of the plan targets. In the present short paper, all attempt is made to check the overall consistency of the plan targets through the celebrated sources of growth approach. It is a novel experiment to integrate plan targets with the source of growth exercise. This study reveals glaring inconsistency in the target setting exercise in the 7th plan - particularly in the primary sector. It also suggests that the strategy implied by the targets set in the plan is substantially different from what is explictly proclaimed inthe 7th plan.