We do not address the question of how to get a nation’s economy to grow. An excellent new book on that subject is Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries, written by Jaddish Bhagwati and Arvind Panagariya.
The authors show how India’s economic growth was embarrassingly limited under a regime of State Owned Enterprises, restricted direct foreign investment and licensed export policies. India’s growth did not start until after 1991 when India turned to greater reliance on private enterprise, more open direct foreign investment policies, and export-oriented growth.
In a word, India decided to integrate its economy with the world economy rather than continue its counterproductive licensing and self-development economic policies.”