Eight per cent solution : a strategy for India's growth

TABLE OF CONTENTS 1. The Curtain Raiser 2. The Heavy-Lifter but Highly Ignored Household Sector 3. The Listed and the Lesser-known Unlisted Corporate Sectors 4. The Government Sector: Believe It or Not, but It Has Its Limits 5. The Connection between Domestic Participants and the External Sector 6. Indian Economy: Past, Present and Future 7. Role of Financial Markets in the Real Economy 8. Lessons for the Future from the Past Appendix 1: Household Financial Position in Nominal/Current Terms since 1950-51 Appendix 2: Household Financial Position since 1950-51 Appendix 3: Estimation of Debt Service Ratio for Indian Households Appendix 4: Deriving India's Corporate Profits from the Theory of Everything Appendix 5: Financial Position of India's Corporate Sector Appendix 6: Major Receipts Components of the Combined Government Appendix 7: Understanding the Economic Classification of Central Government Spending Appendix 8: Economic Classification of General Government Spending Appendix 9: Major Spending Areas/Components of the Combined Government Appendix 10: Understanding the Formal Accounting System of India's Government Appendix 11: Estimating Adjusted Fiscal Deficit from Reported Fiscal Deficit of the Central Government Appendix 12: Reconciliation of the Different Estimates of Union Government Liabilities and Estimation of the Adjusted Debt Appendix 13: Key Concepts in BoP and International Investment Position Appendix 14: India's Merchandise Trade Deficit by Broad Baskets

"The Eight Per Cent Solution: A Strategy for India's Growth" by Nikhil Gupta delves into a critical question that successive Indian governments have grappled with: how to propel the Indian economy toward consistent and sustainable growth. Gupta, a seasoned economist, identifies four key participants in the economy-households, corporations, government, and external entities-and three fundamental activities-consumption, savings/investment, and external trade. He sheds light on the often-neglected financial aspects of the household and unlisted corporate sectors, emphasizing the gap between the real and financial economy. Through a grand unified theory, Gupta presents a roadmap for India to achieve the elusive target of higher growth, addressing the urgent need for job creation, infrastructure development, and improved well-being for its population