The macroeconomics of India's 6th five year plan

A macrodynamic model is constructed to analyse the potential stabilization problems related to the implementation of the 6th Five Year Plan in India. The model is in the applied general equilibrium tradition emphasizing the role of structural factors in the macroeconomy. The macroeconomics of the plan are discussed in relation to the development of the overall savings investment balance. The performance of the private savings and the agricultural production capacity is shown to be crucial to achieve the planned growth with stable inflation and income distribution.