Financing of Development in India

Abstract

Savings, behaviour of the main sectors and trends in each are examined in some detail. The principal source of data used is the National Accounts, supplemented by budgetary data where relevant. The paper pays particular attention to the developments in recent years when the economy has had to adjust to a combination of unfavourable circumstances especially the second oil shock in 1979, the prolonged world recession, and the steady deterioration in the position regarding the availability of external resources. All these development imposed severe strains on the economy and a resource constraint.