India’s economy has grown at an impressive growth over the last two and half decades as a result of wide-ranging structural reforms to open up the economy and make it more competitive after 1991. Due to increasing importance in world economy, issues relating to the growth of Indian economy have been the subject matter of debate and discussion at home as well as abroad. Global financial crisis affected the growth rate of some sector of the economy but not, as much as high, slogans announced by the corporate sector.
In India, where rapid economic growth has become a national goal, analysis of the sources of growth assumes special significance to formulation of the macroeconomic strategy and policies that affect the future growth rate- its rate as well as pattern. Using the data on labour and a model of capital accumulation and productivity growth, we map out GDP growth on India economy until 2050. The main objective of this paper is to estimate potential growth using the Cobb-Douglus production function in the Indian context and then examine their implication for policy.