So monetary policy has had to be tight, with high interest rates contributing to slowing investment and consumption. Moreover, India’s institutions for acquiring land, allocating natural resources, and granting clearances were overwhelmed during the period of strong growth. Strong growth increased the scarcity and value of resources such as land or mineral wealth.
To the extent that these were cheap in the past, there was little reward to misallocating them. Growth, however, increased the rents to corruption. Similarly, industrial development led to growing encroachment on farmland and forests and the displacement of farmers and tribals. India is a developing country with a civil society possessed of first world sensibilities.