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In its history since Independence, India has seen widely different economic experiments: from Jawharlal Nehru's pragmatism to the rigid state socialism of Indira Gandhi to the brisk liberalization of the 1990s. So which strategy best addresses India's, and by extension the world's, greatest moral challenge: lifting a great number of extremely poor people out of poverty? Bhagwati and Panagariya argue forcefully that only one strategy will help the poor to any significant effect: economic growth, led by markets overseen and encouraged by liberal state policies. Their radical message has huge consequences for economists, development NGOs and anti-poverty campaigners worldwide. There are vital lessons here not only for Southeast Asia, but for Africa, Eastern Europe, and anyone who cares that the effort to eradicate poverty is more than just good intentions. If you want it to work, you need growth. With all that implies.
Study of Small Farmers Development Agency in Medak and East Godavari districts, Andhra Pradesh.
Rapid growth since 1980 has transformed India from the world′s 50th ranked economy in nominal US dollars to the 12th largest in 2003. When income is measured with regard to purchasing power parity, the Indian economy occupies 4th place, after the United States, Japan, and China. Along with growing incomes, India′s increasingly outward orientation and the growing optimism about its economy has led to a sweeping rise in international investors′ interest. At the same time evidence suggests that income inequality is rising and the gap in average per capita income between the rich and poor states is growing. Election results at the national and state level suggest that unless the issue of growing income inequality and inequality in standard of living is tackled upfront, there is a risk that the economic reform momentum might slow down. If this happens, growth will suffer. This book provides an in-depth treatment of growth and employment issues in India. It reviews India′s long-term growth experience, emerging constraints and challenges, and the way forward for sustaining rapid growth along with more and better employment. Specifically, the book identifies ways in which investment can be improved to raise productivity and reduce the cost of doing business, thereby promoting domestic and foreign private investment. It looks at the growth and productivity challenges of agriculture and suggests policies that will help raise farm productivity and incomes. It explains the reason for the low overall employment elasticity of past growth and why there has been limited expansion of good jobs, and concludes by suggesting critical reform options for increasing employment.
The Deregulation Of The Indian Economy, Which Started In The 1980S, Received An Impetus In 1991. While The Balance Of Payments Crisis May Have Provided The Immediate Trigger, There Were Structural And Deeper Long-Term Reasons Underlying A Paradigm Shift Of The Economy In 1991. Thus The Period 1992-2004 Marks A Decisive Break With The Past Trend Of Macroeconomic Growth. Most Development Indicators Are Favourable With Foreign Exchange Reserves Rising Above Us$ 130 Billion, Some Segments Of Manufacturing Acquiring International Competitiveness, Growth Of Indian Financial System, Likely Acceleration In It Sector And Enhanced Trade And Investment Cooperation Between India And Asean And East Asian Countries. The Services Sector Is Expected To Gain Further Momentum From The Commodity Producing Sectors, Particularly In The Trade, Transport And Communication Segments And In New Economy Activities. But There Is A Compelling Need To Make The Economy More Competitive, Open And Efficient Through Appropriate Macroeconomic Policies And Financial Standards.There Are Many Daunting Challenges Hampering The Ushering In Of A New Deal . In The Ultimate Analysis, The Crux Of The Issue Lies In A Revival Of Investment (Particularly In Manufacturing), A Transformation Of Agriculture, Check On Deficits Of The Central And State Governments, Privatisation, Change In Labour Laws, Availability Of Efficient And Sufficient Infrastructure At Reasonable Cost, Rise In Per Capita Income, Reduced Regional Disparities And The Social Dimension Of Growth A Sharper Focus On Employment, Health, Education And Gender Equality For Broad-Based Socio-Economic Inclusive Development. For, The Success Of The Development Strategy Requires A Sustained And Rising Income For Everyone And Removal Of Poverty And Deprivation Within A Reasonable Time Frame.The Book Would Be Useful To A Wide Cross Section Of The Reading Public, Including Scholars And Academics, Government Executives, International Institutions, Business Communities And Planners And Policymakers.
It has been often said, even by dispassionate observers, that our economic policies built on ideological considerations and economic assumptions are far removed from the realities of our situation. For more than three decades, we have been striving to design an economic policy and a planning procedure that are distinctly Indian, but the effort has often resulted in only mixing and merging borro wed ideas and experiences. However, whatever may have been the ideological elements influencing the thinking on economic policies in the formative period of the pre-independence days, the situation has changed considerably in the actual formation of economic policies since Independence, and the effort has been not to be too closely identified with any ideology, but to work out a policy that will draw upon all these ideological positions. To what extent we have succeeded, required a detailed examination. Accordingly, I brought out, a few years ago, a treatise on 'India's Economic Policies' which continues to be extremely popular, with the inteIlec tual elite, the world over. In this, the learned contributors, dwelt at length on the different aspects of India's Economic Policies from 1947-77, and brought out the strength and weaknesses of the Indian economic scene. The present work on 'India's Economic Development Strategies' is born out of the conviction that what India needs now is a set of strategies, which are a consistent set of policies, and that there is an urgent need for the same in Indian Planning.