According to recent estimates, India is the third largest economy in the world after USA and China in terms of purchasing power parity. More significantly, the country witnessed a major shift in political leadership when a clear mandate was provided to the BJP-led NDA coalition in the national elections in May 2014. This has empowered the new government to take bold economic decisions to meet the short- and longer-term challenges of this country. Accelerating growth is the immediate challenge for the new government as it is expected to deliver on the economic front as well as on the social front. It has to bolster businesses as well as the common people. India, aspiring to be a global power, must promote harmonious and inclusive socio-economic development. Keeping this in mind, many crucial questions are raised: How has the economy been performing? What should be done to revive GDP growth? What is the relationship between investment and growth? How to address Indiaas vulnerability to external crises? How to control inflation? How to achieve social and environmental goals?

Providing answers to these and other such questions, this volume, the eighth in India Development Report series, examines:
-Macroeconomic developments and economic growth, inflation, and external shocks
-Investment and growth nexus
-Dynamics of a firmas competitive behavior
-Small enterprises and the corporate debt market
-Oil and gas price reforms and agriculture, changing face of rural areas, food inflation, and food security
-Health and health care, and health insurance
-Corporate social responsibility, climate change, urban sustainability, transport, and sustainable development.

The Report includes a statistical appendix, which is a treasure trove of various economic and social indicators and helps provide an independent assessment of the Indian economy.

Table of Contents:
List of Tables List of Figures List of Boxes List of Statistical Profile List of Abbreviations List of Contributors 1. Overview—Accelerating Growth and Development Challenges in Short and Long Terms S. Mahendra Dev and C. Veeramani Introduction Macroeconimic Performance Sectoral Issues Social Development and Welfare Issues Environmental and Sustainability Issues Way Forward for 'Good Days' References 2. Macroeconomic Developments and Challenges for Growth Manoj Panda Introduction Macroeconomic Developments Policy Challenges for High Growth Conclusion References 3. External Shocks Ashima Goyal Introduction The Degree of Openness CAD: Excess Demand or External and Sectoral Shocks? Policy Failures Reducing the Impact of External Shocks on the Exchange Rate Exchange Rate Regime and Inflation Targeting The Way Forward References 4. Unravelling India's Inflation Puzzle Pankaj Kumar and Naveen Srinivasa Introduction Estimating India's Potential Growth: A Time Series Approach Evaluating the RBI's Policy Response to these Developments Conclusion References 5. Investment Growth Nexus: Cyclical Evidence from India R. Krishnan and Rajendra R. Vaidya Introduction A Brief Literature Review Data Sources and Behaviour of Components of Investment Methodology: Measuring the Cyclical Component Empirical Results Conclusion References 6. The Changing Face of Rural India Shovan Ray The Diversity of Indian Experience Working Patterns across Sectors Irrigated, Coastal, and Rainfed Farming Systems Rural Livelihoods Rise in Rural Non-farm Activities Migrations and Their Trails Rural Incomes, Poverty and Deprivations Amenities of Rural Life in India Conclusion References 7. Dynamics of Firms' Competitive Behaviour in Indian Manufacturing Industries: 1971-2010 96 Rupayan Pal Introduction Policy Background The Data Evolution of PCM across Manufacturing Industries: 1971-2010 Econometric Evidence: Firm's Characteristics, Reforms, and Firm-level PCMs Drivers of Industry-specific Competitive Dynamics: A Decomposition Analysis Conclusion References 8. Small Enterprises in Indian Manufacturing and Inclusive Growth: Search for Compensatory Mechanisms K.V. Ramaswamy Introduction Role of Small Enterprises in Employment, Job Creation, and Poverty Evolution of Size Structure and Compensatory Mechanism Data and Defi nitions Employment Change by Type of Enterprise: 2001-11 What Could Be Done to Boost Small Enterprises and Employment Growth? Conclusion References 9. Corporate Debt Market in India: Issues and Challenges Rajeswari Sengupta and Vaibhav Anand Introduction Current Status of Indian Corporate Debt Market Supply Side Issues Analysis of the Recent Public Issuances Recent Steps to Address Supply Side Issues Demand Side Issues Recent Steps to Address Demand Side Issues Secondary Market Issues Wholesale Debt Market (WDB) Risk and Hedging Related Issues: CDS Risk and Hedging Related Issues: Interest Rate Futures Conclusion References 10. Oil and Natural Gas Price Reforms and Its Impacts on Indian Agriculture A. Ganesh-Kumar and Nitin Harak Introduction Oil and Natural Gas Sector—Some Stylized Facts Agriculture and Its Linkages with the Oil and Natural Gas Sector Methodology and Data Scenario Specification Results Conclusion References 11. Food Inflation in India: Implications for Food Security and Policy Options S. Mahendra Dev, Vijay Laxmi Pandey, and Andaleeb Rehman Introduction Elements of Food Inflation Persistence in Inflation Factors Driving Food Inflation Infl ation in Some of the Specific Commodities Policies for Reduction in Food Inflation References 12. Food Security in India: A Review of Current Debates Sudha Narayanan Introduction The Challenge of Food Security in India The National Food Security Act: Claims and Contestations India and the WTO Agreement on Agriculture Sustainable Nutritional Security Conclusion References 13. Health and Health Care in India: Current Scenario and New Challenges Subrata Mukherjee Introduction Linkages between Health, Poverty, and Development Health Status Access to and Utilization of Health Care Health Expenditure and Health Financing Health Interventions and Programmes Emerging Issues Conclusion References 14. Assessing Health Care Scenario and Willingness to Pay for Health Insurance in Slums of Mumbai and Its Periphery Basudeb Chaudhuri, Namrata Gulati, Apara Banerjee, Ahana Roy, Imdadul Halder, and Safayet Karim Introduction Existing Health Insurance Schemes Health Insurance Schemes for Maharashtra Methodology Main Findings from the Survey Willingness to Pay for Health Insurance Factors Impeding Health Insurance Affiliation Conclusion References 15. Bridging the Welfare Gap? Corporate Social Responsibility in India Jayati Sarkar and Subrata Sarkar Introduction CSR in India—The Legal Framework Why Corporate Social Responsibility? Regulatory Approaches to CSR Looking Back to Look Forward: CSR Practices of Indian Companies Mandatory CSR: Prospects and Challenges References 16. By Chance or Design: India's Makeover since 2001 S. Chandrasekhar Introduction Where does India Live? Progress towards Development Goals Concerns over Labour Market Financial Inclusion Looking Ahead References 17. Climate Change and Its Impacts: Understanding Some Facts, Myths, and Controversies Vinod Kumar Sharma Introduction Some Global Warming Facts Climate Change Negotiations Myths and Controversies Stance of Developing Countries Th e Way Forward Conclusion References 18. An Odyssey to Sustainability: The Urban Archipelago of India B. Sudhakara Reddy Prologue Methodology Growing Cities, Green Cities, and 'Just' Cities Sustainability—An Elusive Goal? The Task Ahead References 19. Indian Transportation and Its Sustainability Sudhakar Yedla Indian Transportation—Th e Present Situation Transportation and Sustainability Issues Indian Planning and Sustainable Transport—Way Forward References A Statistical Profile of India's Development