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ent fiscal policies in stimulating domestic demand of a country. That needs each country to be more price competitive than others, by cutting unit cost through measures like wage control, flexibility in labour contracts, and higher labour productivity through reducing the labour force(Bhaduri,2006).But Bhaduri’s concern is that even if a country achieve export surplus by opening up the economy, it could be counter-productive. Because the wage control and reducing of labour force would lead to fall in consumption by working people, So that will offset its possible positive impact on investment and exports (Bhaduri and Marglin, 1990).As a result of these policy shift during mid 1990’s governments can no longer avoid the feelings of the traders and financial markets. Bhaduri makes his framework based on the criticism that all these activities are against Keynesian and social democratic vision of ‘cooperative capitalism’ in which a neutral state is supposed to follow more even-handed policies towards capital and labour (Bhaduri,2005).He claimed that India is also fell down to the clutches of the idea ‘Sound Finance’ which is sponsored by developed countries and international financial Institutions for encouraging private sector. The anti-Keynesian sentiments and political inclination in the center has led to the marginalization of poor in this high growth era and this high growth is purely due to the export surplus generated from trade after liberalisation. So Bhaduri is a critic of ‘Sound Finance’ and he alleged that if the high growth accompanied by strategies of sound finance, then situation of Indian poor will be in utter misery.

Critical Evaluation of the Paper

In the critical evaluation section, I am not going to analyze each objective separately. Instead of that I have identified some problems and issues and evaluation of those problems will help in fulfilling the objectives.

Poor statistical base for analyzing the growth in India

The notable reasons for India’s high growth rate during the period 2003-2008 is the sudden boom in service and industrial sectors of the country. According to Bhaduri the giant corporations are mainly excelled in these two sectors. The industrial sector boom is all about two-digit industry groups and use-based categories and the service sector is dominated by communication and business services(Nagaraj,2008).After a period of slow down, the growth rate of manufacturing sector has grown at a rate of 8.8 during 2002-03 t0 2006-07 and in the case of service sector, both telephone services and business services has boosted share in services output from 3.4 per cent during the period of liberalisation to 14.6 per cent in 2005-06.Bhaduri correctly pointed out that these growth is happened in Private corporate-dominating firms. But according to some experts these growth rates are not reliable and they can be over-calculated or under calculated.

From 2000-01 IIP (Index of Industrial Production) has replaced ASI data in estimating the industrial output in India. Regarding the two-digit level classification ASI is a better predictor than IIP and it is calculated by the monthly data which is voluntarily supplied by factories. According to (Kurukshetra and Kohli,1995) the information provided by the firms have weakened since liberalisation, because of the easiness in the policy. So that substitution brought some kind of uncertainty in the estima