ABSTRACT
In this chapter we try to develop a macro-model suitable for an economy of the Indian type. The main characteristic of the Indian economy is the fact of stagnation over a long period. During 1881–1921 both population and per capita incomes were roughly constant. Between the period 1921–41 population increased but per capita income was still roughly constant. During the plan periods there has been some growth in per capita as well as the total income, but still the production structure and employment pattern have changed only to a limited extent and there is as yet no sign of self-sustained growth.
