000			01580pab a2200181 454500
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100			_aNagaraj, R.
245			_aIndia's dream run, 2003-08: Understanding the boom and its aftermath
260			_c2013
300			_a39-51.
362			_a18 May
520			_aFrom 2003, the Indian economy enjoyed a boom in growth for five years. The economy grew at a rate close to 9% per year, until it was punctured by the financial crisis of 2008. What explains that boom? Did the sustained liberal reforms finally pay off? Or was it a debt-led, cyclical boom, coinciding with an exceptional phase in the world economy? This paper contends that it was the latter case, driven by private corporate investment , financed by rising domestic savings, and topped by unprecedented inflows of foreign capital- leaving behind heightened corporate leverage, and frothy asset markets. As the global economy faces a semi-slump and precarious macroeconomic balance, how to reverse the current slowdown isat the crux of the discourse on India's policy paralysis. With the corporate sector mired in over-leverage, perhaps the most credible policy options now available are to step up public infrastructure to boost investment demand, and expand bank credit on easy terms to the informal sector and agriculture - which were throttled during the boom years - so as to ease supply constraints. - Reproduced.
650			_aEconomic growth - India
650			_aEconomic growth
773			_aEconomic and Political Weekly
908			_aN
909			_a99080
999			_c99079 _d99079