Economic growth implies rise in investments, greater employment, increase in aggregate and per capita incomes and hence larger consumption demands also. Changes in consumption and investment in turn would not only promote domestic economic activity, but also lead to increased exports and imports. The most important problem in Indian economic growth is the removal of poverty. The production trends can not but be disheartening in an economy where the rate of savings and investments are low. India is not in a position to pay for her large imports with her inadequate and small foreign exchange reserves and export earnings. So, its primary need is to step up the rate of capital formation and internal production for making a transition from economic stagnation to self-sustaining growth. This volume deals with various issues concerned with Indian Economic Growth.

During the latter half of the nineteenth century, the economic and social life of the country underwent far reaching changes under the impact of the political administration, educational system, and economic policies of the British in India. The changed economic and political condition resulted in the development of a new line of thinking in the country. From now onwards, we find that the thinking on economic matters was largely influenced by a revolt against the British rule. The growing poverty of the Indian people and the spread of education in the country led people to think that there was something fundamentally wrong with the economic and political set-up of the country. The resultant effect was the growth of national consciousness in the country and the establishment of the Indian National Congress. Increased contact with the west may be treated as an important milestone on the road of the development of economic ideas in the country. In general, economic nationalism nurtured an interest in the question of growth and backwardness in the context of colonial metropolitan relations, which raised basically historical questions contrary to the inclinations of the neoclassical school.

With the rapid progress of decolonisation the political order underwent a rapid transformation. One of the most historic and spectacular developments of global significance following upon the end of Second World War has been the phasing out of the colonial era over a short span of about three decade only. During the interwar years. Western Europe dominated the world. Sovereignty over scores of countries in Asia. Africa and South America resided in its seven metropolises. These centres of power influenced, indeed determined, the structure of political and economic institutions over nearly three-fourth of the globe. The trends in the international trading environment during the post decade or so have been influenced by increased perception on the part of the international community to the need for formation of trade and development processes of the Third World. This perception is also reflected in adopting of pacific policy measures. In trade, addition of part four of General Agreement on Trade and Tariffs. Which permitted special dispensation in favour of developing countries and adoption of Generalised System of Preferences, is a significant example of progressive moves taken by developed countries.

The study of monetary policy in the context of a less developed economy is an estimation of the measure of contribution made to economic development of the country. It is a case study of monetary management in the developing economy of India. The study in fact departs from the traditional monetary policy and explains growth-oriented policy implications with an objective of achieving development with stability.

Monetary policy in India has to be formulated and pursued in the context of a planned economy whose main objectives to accelerate the process of economic growth. The compulsion to expand expenditures, both plan and non-plan, necessarily leads to an expansionary fiscal policy and monetary policy has to play the role of a counter-vaillina force while facilitating at the same time the fulfilment of the basic objectives of planning.