Includes bibliographical references and index.

1. Introduction
2. Growth in Agriculture
3. Deceleration in Industrial Growth
4. Public Investment and Slow Economic Growth
5. The State as an Autonomous Actor
6. The Dominant Proprietary Classes
7. Conflicts in the Dominant Coalition
8. The Effect of these Conflicts on Public Mobilization and Management of Capital
9. Conflict Management and its Relation to the Democratic Process
App. Tables (1950-51 to 1981-82)
Epilogue on the Political Economy of Reform in India
App. Tables (1980-81 to 1995-96).

India, despite her tremendous potential for emerging as an economic giant, is one of the poorest countries in the world. In this insightful and easily accessible classic Professor Bardhan examines the political and economic constraints on Indian development and in the process, highlights the nature of the relationship between the government and different interest groups, and the impact of conflicting pressures for patronage and subsidies on the functioning of both the economy and the polity. This expanded edition contains an epilogue which examines the political economy aspects of the recent policy reforms in India. Given the dominant anti-market streak in the Indian political culture, collective passion for group equity and deep suspicion of competition, Bardhan sounds a word of caution about the need to base our expectations of the success of these reforms on ground realities. This book is essential for anyone interested in understanding contemporary India.