Economic Liberalization and Indian Economic Growth: What’s the Evidence?, by Ashok Kotwal, Bharat Ramaswami, and Wilima Wadhwa, examines the extent to which India’s significant acceleration in economic growth can be attributed to liberalization policies. Published as a scholarly piece in the Journal of Economic Literature in 2011, the paper brings together a range of studies and datasets to evaluate the impact of policy reforms implemented primarily during and after the early 1990s.

The authors adopt a nuanced perspective, noting that while the 1991 reforms—such as deregulation, reduced trade barriers, and foreign investment liberalization—are often celebrated as the turning point in India’s economic trajectory, the reality is more complex. They highlight that some growth-enhancing changes began to take shape even before the landmark reforms, and that various institutional and regional factors influenced the subsequent growth outcomes. The paper assesses different sectors, including agriculture, manufacturing, and services, to understand how structural changes and productivity gains unfolded over time.

By carefully weighing evidence and acknowledging competing interpretations, Kotwal, Ramaswami, and Wadhwa challenge a one-dimensional narrative. They encourage readers to consider incremental reforms, the role of existing institutions, and the interplay of domestic and international forces. Ultimately, the paper provides a more comprehensive understanding of India’s growth experience, offering lessons for policymakers and scholars examining liberalization in other developing economies.