The problem decade was the '70s and the problem year, due to the Gulf crisis, was 1991-92, when the GDP growth rates were 2.9 per cent and 1.4 per cent respectively. In the new millennium, the GDP growth rate accelerated to 6.9 per cent and in the last four years (2003-04 to 2006-07), it averaged 8.6 per cent.
The impressive growth performance since 1990s was possible due to the strong foundation of an indigenous industrial base, domestic entrepreneurial class, knowledge enhancing institutions, and improvement in vertical social and economic mobility during the decades 1950s to 1990.