An Analysis Of Institutional Factors In India 's Economic Growth

India has a long history and splendid culture for six thousand years. Ancient India, ancient Egypt, ancient Babylon and ancient China, collectively known as the four ancient civilizations in the world. Ancient India experienced a prehistoric culture Mesolithic and Neolithic alternation; Sixteen Kingdoms co-exist and Mauryan period had been through division and unification for a long time until the Islamic alien invasion. Modern India was under the governance of British, French, Portuguese in most of time until the formation of the India-Pakistan partition standing for the independence of Indian. In evolution of Indian history, Institutional factors reflects ideology of upper class, playing an important role in the process of Indian history. Institution was different in different period of Indian, but the entrenched caste system and deeply rooted religious ideas were through the history as a guideline in lifestyle of Indian. They worked closely together, which affected the formation of ideology and human values of the society.Institution is standard for all rules that everyone must be followed, reflecting the ideology of the governor. In micro level, efficient institution make the private marginal rate of return close to the marginal social rate of return by creating an effective system of incentives, which regulates the behavior of individuals and promotes national economic growth. In macro-level, rational institution can promote the progress and innovation of technology, playing an important role for a country’s economic growth and social change. The economic history of India is complex: the ancient Indian civilization had experienced a glorious civilization, modern India was under colonial rule for a long time, India got trouble in low economic growth rate for a long time when it was independent, through the system reformation in 1990 s, India created a brilliant economic growth miracle in the world.Researching for the institution in the process of economic growth, we can take the advantages of India’s system and make appropriate amendments for the institution of our country to stimulate economic growth, which has a positive meaning.This thesis reviews the achievement of previous studies, analyzing the relationship between institutional change and the economic growth in India to explore the impact of system on economic growth. The first chapter is the background and significance for this thesis;The second chapter summarizes the relation of institution and economic growth in ancient and modern India; The third chapter will be divided into two parts, one is the period of Nehru mode for India, the other is the period since the market-oriented reform in 90s; The fourth chapter analyzes the factors that affecting India’s economic growth and industrial structure through empirical, statistical methods; The fifth chapter compares the institution of the Singh and Modi government in new century; The sixth chapter analyzes the relationships between China and the India and gives some advices for our country according to India’s successful experience.