Preface

Acknowledgements

Contributors

Part I : Planning, Institutional Framework, 
            Constraints and  Role of the State

1.Indian Economy at Independence    
   Uma Kapila

      •The Colonial Regime

      •The India of 1947

      •The Agrarian Scene

    
      •The State of Indian Industry 
        and its Structure

      •The Planning Era

2.The Economic Legacies of Colonial Rule 
    in India: Another Look
    Tirthankar Roy

      • Linking Empire with Development:
         The Old Theory

      • Linking Empires with Development:
         The New Trends

      • What Kind of a State Was the Raj?

      • Benefits and Costs of Colonialism

      • Policy and Ideology after 1947

      • Conclusions: Economic 
         Legacies of Colonialism

3.Planning, Market and the State 
   (Ed. Notes)
    
      • Structural Constraints and 
         the Development Strategy

      • Role of the State as Visualised
         in the Fifties 

      • Evolution of Strategy and 
         Priorities 

      • Changing Perceptions

 
      • Role of Planning in a Market 
         Economy

      • Redefining the Role of State

      • The Government, the State 
         and the Market

      • Relevance of Planning Commission

      • NITI Aayog: Role and Functions

4.Twelfth Five Year Plan: Faster, More 
   Inclusive and Sustainable Growth    
   Manmohan Singh

5.Fiscal and Budgetary Developments: 
   Prospects and Reforms (Ed. Notes) 

      • Introduction

      • Recent Fiscal Performance

      • Medium-Term Strategy

      • Conclusions

6.Demographic Constraint: Population 
   Change and Economic Development 
   (Ed. Notes) 

      • Introduction 

      • Economic Development and 
         Population Growth 

      • The Microeconomic Theory 
         of Fertility 

      • Population Trends

      • Gender Equity and the Demographic 
         Transition

      • Population Policy since 1947

      • National Population Policy, 2000

      • Human Resource Development

      • Public Expenditure and Education
         Policy

      • Health Care as a Social Responsibility

      • Human Development: International 
         Comparison

      • Disparities and Divides

      • Tamil Nadu: The Success Story

    
      • The Future

      • Demographic Dividend and 
         Related Policy Interventions

7.India’s Demographic Transition and 
   its Consequences for Development    
   Tim Dyson

      •India’s Demographic Transition 

      •Urbanisation

      •The Future

      •Discussion

Part II : Growth and Structural 
             Change since 1950

8.Growth and Structural Change
   Since 1950 (Ed. Notes)

      • The Performance

      • India’s Growth Turnaround

      • Recent Growth Record

      • Aggregate Demand

      • Factor Shares in GVA

      • Priorities for Reviving Growth

      • Reform Agenda

      • Performance on Inclusiveness

      • The Need for Faster Growth

      • Human Development

      • Growth and Structural Change

    
      • Sectoral Growth Trends

      • Growth and Sectoral Shares, Cross-
         Country Evidence and Indian Experience 

      • Inter-Regional Disparities in Growth 
         and Development

      • The Way Ahead

      • Growth Prospect: An Assessment

      • Sustainable Development and 
         Climate Change

9.The Recovery of India: Economic 
   Growth in the Nehru Era
   Pulapre Balakrishnan

      • Introduction

      • Nehru-Mahalanobis Strategy

      • A Record of Growth in the 
         Nehru Era

      • Caricature of a Vision: Through
         a Glass, Darkly

      • Conclusions

10.Macroeconomic Overview: The 
     Growth Story
     Manoj Panda

       •Introduction

       •National Income Growth

       •Other Macroeconomic 
         Developments

       •Growth Prospect: An Assessment 

11.Growth Record of the Indian Economy, 
     1950-2008: A Story of Sustained Savings 
     and Investment
     Rakesh Mohan

       •A Review of the Indian Growth 
         Process 

       •Prospects for the Next Five Years 

       •Issues and Challenges 

12.Growth and Investment: The Interlinks    
     C. Rangarajan

       •Behaviour of Saving

    
       •Behaviour of Investment

       •The Way Forward

13.Prospects and Policy Challenges 
     in the Twelfth Plan
     Montek S. Ahluwalia

       •Review of Recent Performance 

       •Growth Prospects for the 
         Twelfth Plan

    
       •Some Critical Policy Challenges

       •Conclusions

       •Growth Performance and 
         Prospects: An Update

       •Inclusiveness of Growth

       •Policy Challenges

14.India on the Growth Turnpike: 
     No State Left Behind
    Arvind Panagariya

       •Growth: No State Left Behind

       •Poverty: Progress Everywhere

       •Smaller and Newer States and Union
         Territories

       •Conclusions

Part III : Distributional Issues: Poverty, Inequality,
               Malnutrition and Unemployment

15.Assessment of the Growth Experience: 
     Poverty, Inequality and Unemployment 
     (Ed. Notes)    

       • Poverty and Unemployment

       • Poverty Estimates

       • Poverty and Inclusive Growth

       • Inequality

       • Urban Inequality After Economic 
          Reforms

       • Employment

       • Employment, Unemployment and 
          Labour Force Dynamics

       • Underemployment: A Continuing 
          Characteristic of Employment

       • Characteristics and Structure of 
          the Indian Labour Market

       • Trends and Patterns of Employment
          Growth

       • Summing Up: Key Features of the 
          Employment Situation

       • Labour Market Reforms Would Help
          Boost Employment Creation

       • Public Employment Programme for 
          the Unorganised Workers: The Case
          of NREGA

       • The Performance

       • Success Stories

       • Policy Agenda

       • Employment Perspective

       • Skill Development: The 
          Challenge

16.Poverty and Inequality in India: A 
     Re-Examination
     Angus Deaton and Jean Drèze

       •Economic Inequality in the 1990s

       •Qualifications and Concerns

       •Beyond Poverty Indexes

17.Counting the Poor: Measurement 
     and Other Issues
     C. Rangarajan and S. Mahendra Dev

       • Clarifications on Issues

       • What is New?

       • Use of Calories

       • Multidimensional Poverty

       • Higher Urban Poverty

       • NAS-NSS Consumption Differences

       • Poverty Measures in Other Countries

    
       • Public Expenditure and Poverty

       • Poverty Ratio for Eligibility under 
          Programmes

18.Inequities in Access to Health Services 
     in India: Caste, Class and Region
     Rama Baru, Arnab Acharya, Sanghmitra 
     Acharya, A.K. Shiva Kumar and K. Nagaraj

       • Determinants of Health Inequities

       • Features of Health Service Provisioning

       • Inequities in Access to Health Services

       • Factors Affecting Equity in Access 
          to Health Services

       • Equity Enhancing Initiatives

       • The Way Forward

19.Labour and Employment in Fast Growing India:
     Issues of Employment and Inclusiveness
     T.S. Papola and Alakh N. Sharma

       •Introduction

       •Some Characteristics of the Indian 
         Labour Market

       •Trend and Pattern of Employment 
         Growth

       •Impact of Global Financial 2008 Crisis on 
         Indian Labour Market and Employment

       •Quality of Employment and Disparities

       •Increasing Labour Flexibility and 
         Erosion of Labour Rights

       •Conclusion and Policy Agenda

20.China and India: Idiosyncratic Paths 
     to High Growth
     Kaushik Basu

       • Introduction

       • Economic Growth: Core
          Factors

       • The Asian Theatre

       • China and India: What Were
          the Triggers?

       • Notes on Markets and Interventions

Part IV : Agriculture

21.Indian Agriculture: Developments, 
     Issues, Policies and Agenda for Reforms 
     (Ed. Notes)

       
       • Introduction

       • Linkages between Agriculture
          and Other Sectors

       • The Institutional Context

       • The New Technology

       • Three Phases of Green 
          Revolution

       • Reform Period, 1991 to the 
          Present

       • Deceleration in Agriculture Growth

       • Long-term Performance, and What 
          could be Holding Back Indian Agriculture

       • Major Factors Affecting the 
         Growth Potential

       • National Policy for Farmers, 2007

       • Emerging Imbalances 

       • Cereals Production and Build up
          of Stocks

       • Secondary Agriculture: A Driver for 
          Growth of Primary Agriculture

       • Reforming the Three ‘I’s: Investments,
          Incentives, and Institutions

       • Food Management

       • Public Distribution System (PDS) 

       • Food Subsidy

       • Food Security

       • Agricultural Price Policy

       • Challenges and Outlook

22.Agricultural Development in India:
     Performance, Issues and Policies    
     S. Mahendra Dev

       •Performance of Agriculture

       •Policies Since Independence

       •Issues and Policies for Higher Growth, 
         Equity and Sustainability

       •Conclusion

23.Growth in Indian Agriculture: Responding
     to Policy Initiatives since 2004-05
     Bipin K. Deokar and S.L. Shetty

       •Policy Initiatives

       •Improved Private Investment

       •Positive Outcomes

       •Production Trends: Food Grains

       •Quantum Leap in Productivity

       •Impressive Diversification

24.Agricultural Price Policy, Farm 
     Profitability and Food Security
     S. Mahendra Dev and N. Chandrasekhara Rao

       •Trends in Costs and Yields

       •Trends in MSPs and Prices Realised
         by Farmers 

       •Relationship between Costs, Prices 
         Realised and MSP

       •Returns to Farming

       •Increased Role of Price Policy 

       •Concluding Observations

25.The National Food Security Act: 
     Challenges and Options    
     Ashok Gulati and Shweta Saini

       •The National Food Security Act 
         (NFSA), 2013

       •Targeted Public Distribution System 
         (TPDS) Provisions of the NFSA, 2013

       •Other Welfare Schemes under 
         NFSA 2013

       •Conditional Cash-Transfer Scheme 

       •NFSA’s Operational Challenges

       •Way Forward

26.Food Inflation in India: Diagnosis 
     and Remedies    
     Ashok Gulati and Shweta Saini

       •Backdrop

       •Nature and Structure of Food 
         Inflation

       •Drivers of Food Inflation: 
         The Diagnosis

       •Remedies: Policy Options

Part V : Industry, Services and Infrastructure

27.Industrial Development and 
     Policies since Independence 
     (Ed. Notes)

       • Extent and Pattern of Industrialisation
          During the British Rule 

       • The Industrial Scene at Independence

       • Industrial Control Regime

       • The Policy Regime in the 1990s

       • New Economic Policy

       • Opening up to Foreign Investment

       • Public Sector Reforms, Privatisation
          and Infrastructure 

       • Industrial Policy Objectives for 
          the Twelfth Plan and Beyond

       • Industrial Growth 

       • Industrial Growth in the 1990s 

       • The Manufacturing Slowdown 
          (1996-2002)

       • Factors Causing the Industrial 
          Slowdown: Some Hypotheses

       • Productivity Trends in the 
          Manufacturing Sector

       • Recovery in Industrial Growth
          Since 2002-03

       • The Slowdown During 2007-08 
          and 2008-09

       • Recent Industrial Growth, 2008-09 
          to 2013-14

       • IIP-Based Industrial Performance

       • Industrial-sector Performance 
          Based on Revised GDP Estimates

       • Performance of Eight Core Industries

       • Why has Growth Moderated?

       • Challenges Arising from Government
          Policies

       • Micro, Small and Medium Enterprises 
          (MSMEs)

       • Status and Key Challenges

       • Public Sector

       • Privatisation 

       • Foreign Direct Investment (FDI)

       • FDI Policy Changes Announced 
          in the Budget 2014-15

       • Outlook    

28.Industrial Performance, 1991-2008: 
     A Review    
     R. Nagaraj

       •Introduction

       •Industrial Performance After 1991-92

       •Why Did the Reforms Fail to Deliver 
         the Expected Results?

       •What Should Be Done Now?

       •Conclusions

29.Industrial Development and Policies 
     Since Independence: Growth without
     Employment
     K.L. Krishna

       •Introduction

       •Policy Regimes and Pattern 
         of Growth

       •Structural Transformation 
         of the Economy

       •India’s Unique Pattern of
         Development

       •Employment Generation in
         Manufacturing

       •Recent Trends in Manufacturing 
         Employment

       •National Manufacturing Plan 
         and its Progress 

       •Kumar’s Policy Suggestions

       •Concluding Remarks 

30.Public Sector Performance Since 
    1950: A Fresh Look
     R. Nagaraj

       •Public Sector Performance

       •Reasons and Implications

       •Conclusions

       •An Update

31.On Strategies for Disinvestment 
     and Privatisation    
     Vijay Kelkar

       •Public versus Private Ownership 

       •Privatisation

32.Of Omissions and Commissions:
     India’s Competition Laws
     Aditya Bhattacharjea

       •Introduction

       •The MRTP Act, 1969-2009 

       •The Competition Act, 2002 

       •Post Script (2014) 

33.Small-scale Industrialisation under 
     Globalisation: Is the Tide Turning 
     Around?
     M.H. Bala Subrahmanya

       •Introduction

       •Globalisation and Domestic Economic 
         Reforms: Implications and Impact on 
         the SSI

       •SSI Performance in the Globalisation Era

       •Inferences and Conclusions (in the 
         Context of Recent Policy Initiatives)

34.The Employment Problem in India and
     the Phenomenon of the Missing Middle    
     Dipak Mazumdar and Sandip Sarkar

       •Trends in the Industrial Structure 
         of Employment

       •Employment Growth in the Tertiary 
        Sector in India in a Comparative Context

       •Dualism in Indian Manufacturing

       •Why is Dualism a Problem for 
         Manufacturing Growth?

       •Causes of the Emergence and 
        Persistence of Dualism

       •Conclusion

35.Services in India’s Growth Process 
     (Ed. Notes)

       • Introduction

       • Growth and Sectoral Shares,Cross-
          Country Evidence and Indian Experience

       • World Services Employment

    
       • World Services Trade

       • Factors Underlying the Services
          Growth

       • India’s Services Employment

       • India’s Services Trad

       • Foreign Direct Investment in 
          India’s Service Sector

       • Challenges

36.Infrastructure and Economic 
     Development (Ed. Notes)

       • Introduction

       • Strategies for Infrastructure 
          Development

       • Differences in Infrastructure 
          Building Between India and China

       • Prioritisation of Infrastructure Sectors
          for Development: Twelfth Five Year 
          Plan 2012-2017

       • The Way Forward

       • Foreign Direct Investment into
          Major Infrastructure

       •Infrastructure Development In 
         India: A Macro Perspective

       • Challenges and Outlook

Part VI : The External Sector

37.India’s External Sector:  Policies, 
     Developments and Issues (Ed. Notes)

       • Trade Policy

       • Structural Changes in India’s 
          Foreign Trade During 1980s 
          and 1990s

       • India’s Merchandise Trade 2001-02
          to 2013-14

       • Trade Deficit

       • Direction of Trade

       • Special Economic Zones

       • Bilateral and Regional Trade
          Agreements

       • Challenges and Outlook

       • Balance of Payments

    
       • Managing Capital Flows

       • External Debt

       • International Comparison

       • Foreign Exchange Reserves: 
          Approach, Developments and
          Issues

       • Foreign Exchange Rate Policy

       • Exchange Rate Management

       • Concluding Remarks

38.A Rethink on India’s Foreign 
     Trade Policy
     K. Kanagasabapathy, Vishakha 
     G. Tilak and R. Krishnaswamy

       •India’s Place in Global Trade

       •Direction and Composition

       •Strategic Rethink

39.India’s External Sector: Do We
     Need to Worry? 
     C. Rangarajan and Prachi Mishra

       •Introduction

       •External Sector Reforms

       •External Sector Performance 
         Since 1991

       •Some Analytical Issues

       •Way Forward

40.Foreign Direct and Portfolio Investments
     Flows and Development: A Perspective 
     on Indian Experience
     Nagesh Kumar

       •The Context

       •Evolution of Policy Regime 
         Towards FDI and FPIs in India

       •Foreign Direct Investment Flows
         and Their Quality

       •FPI Inflows and Their Impact

       •India as an Emerging Source
         of FDI Outflows

       •Concluding Remarks and 
         Policy Lessons

41.India and the WTO (Ed. Notes)

       • World Trade Organization

       • India and the WTO

       • India’s Participation in WTO 
          Meetings

       • WTO Negotiations and India

42.Indian Economy Today: Overview 
     and Comparative Perspective
     Uma Kapila

       • Macroeconomic Management 
          and Policy Reforms

       • Outlook for Growth

       • External Sector

       • Comparisons with the 
          Non-African Poor

       • India’s Decline in South Asia

       • India Among the BRIC

       • Conclusion