Chapter

The Decade of the 1980s

Suresh D. Tendulkar and T.A. Bhavani

in Understanding Reforms

Published in print August 2012 | ISBN: 9780198085584
Published online September 2012 | e-ISBN: 9780199082087 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198085584.003.0005
The Decade of the 1980s

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This chapter reviews the origins of the major changes in polity and economy in India in the 1980s. In the high tariff regime of the 1980s, small-scale producers often found it more profitable to turn traders by selling the preferentially allocated imported inputs in short supply at a premium to larger units in the domestic market rather than using them in their own production. In external trade, rules for importation of technology were considerably liberalized in view of the technology backlog caused by an earlier autarkic policy, and quantitative controls on (mostly non-competing) imports were replaced by tariffs to bring privately earned import premia into government revenues. The chapter traces the emergence of the Indian economy from a thirty-year-long low-growth equilibriumto a higher growth phase.

Keywords: vertical mobilization; farmers; distributional coalition; traders; tariff; external trade; subsidies; government revenues; low-growth equilibrium; industrialists

Chapter.  4733 words.  Illustrated.

Subjects: Economic Development and Growth

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