Sources of Economic Growth in India Implied by the Seventh Five-Year Plan 1985- 90

Abstract

"The two volumes of the Seventh Plan, released by the Government of India, have provided a reasonably good empirical base for looking into the implications and consistency of the plan targets. In the present note, an attempt is made to check the overall consistency of the plan targets through the celebrated “Sources of Growth” approach. It is a novel experiment in integrating plan targets with the “Sources of Growth” exercise. This study reveals a glaring inconsistency in the target- setting exercise in the Seventh 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 explicitly proclaimed in the Seventh Plan.