Many economists now argue that the economy moved to a higher growth path around 1980–81, a decade prior to the initiation of comprehensive structural reforms in the early 1990s. 2  BIS central bankers’ speeches  Growth”2. Growth was primarily driven by domestic consumption.
Investment rate was low and mostly financed by domestic savings and thus the Current Account Deficit (CAD) was less than 1 per cent of GDP. Growth during this phase was led by the industrial sector followed by the services sector (Table 2). 8. Growth accelerated during the second phase (1980–81 to 1993–94).