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In recent years, the Indian economy has achieved a high growth trajectory becoming one of the largest economies in the world. Interestingly, India still has large reserves of untapped human resources to grow even faster in a sustained manner. is the economy on track to achieve such growth rates in the future? The volume explores this issue using a detailed macromodel of the Indian economy (the DPC-IEG model) that has proved effective in explaining India's economic performance over the last few years. The models for each sector are specified keeping in view both theoretical and empirical economic considerations of the Indian economy in the pre- and post-reform periods. The macromodel is then used to evaluate the impact of structural reforms on investment, growth, inflation, fiscal deficit, and balance of payments. It is found that the steady growth of the nineties has given way to a higher growth path in recent years. Alongside, the economy has also developed a resilience to both internal and external shocks. However, acceleration of long run growth rates would require a substantial improvement in both productivity of capital and rate of investment.
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