The analysis attempts to bring out how the links between the various sectors of the economy impinge on the development process. It is shown that moving labour from agriculture into industry is a key element in improving the well-being of the poor. The analysis brings out why growth in agricultural productivity is another key to the elimination of poverty. It is demonstrated that industrial progress by itself cannot benefit the poor, in the absence of progress in the agricultural sector. The question of how trade with the developed countries can benefit or hurt India is also considered. It is shown that by exporting industrial goods, the labour force employed in agriculture can be reduced and the poor in India made better off. Finally, the book
examines why India's industrial policy from Independence until very recently has stifled entrepreneurship and undermined technical change in industry.
Readership: Development economists; students of development economics.
Mukesh Eswaran and Ashok Kotwal, both Professors of Economics, University of British Columbia, Canada