Growth

Capital market stability is a crucial ingredient for the smooth functioning of a developing economy. This paper attempts to identify the significant macroeconomic factors affecting prominent sectoral stock indices and helps investors draw up an effective diversification strategy.

Despite the recent gains, the relative size of the exports sector remains significantly below the peak levels.

In this age of computers, the development and advancement of the information technology sector can push a developing economy into the developed countries category. The present study found that the IT sector of India has experienced boom and prosperity during the first decade of this century. Therefore, the supportive policies and acts, such as the Information Technology Act, 2000, National Broadband Policy, 2004, and Special Economic Zones Act, 2005 have favourable impact on the information technology sector. Meanwhile, it is moving towards recession in the second half of the second decade of this century. However, the study confirms good performance of India’s information technology sector in terms of its contribution to the gross domestic product, foreign exchange earnings, and employment generation in the Indian economy.

Erratic fiscal and monetary policies tend to slow down growth and fuel inflation.

In order to analyse how the excess of growth over the real interest rate can best contribute to Indian post-COVID-19 debt adjustment paths, the article draws on historical experience, past adjustment episodes and special features of emerging markets. It notes that a countercyclical primary deficit will contribute, and together with a substantial g–r gap, lower debt most efficiently, creating space for adequate fiscal response to future shocks.