Business Environment by Pearson

Planning in India | 39

without the attainment of the other. External markets are an extremely important source of

demand and they need to be tapped much more aggressively for many sectors. However, given

the size of the economy and the present relative size of exports, much of the demand needed to

support high growth will have to come from the domestic economy itself. Although growth has

strong, direct poverty-reducing e ects, the frictions and rigidities in part of the Indian economy

can make these processes less e ective.  ere are several ways in which this can be achieved.

First, the agricultural development must be viewed as a core ...