For almost three decades, the economic development pattern of India was characterized by strong centralized planning, government ownership of basic and key industries, excessive regulation and control of private enterprise, trade protectionism through tariff and non-tariff barriers, and a cautious and selective approach towards foreign capital. However, this strategy began to be widely questioned in the 1980s. Policy makers started to realize the drawbacks which inhibited competitiveness and efficiency, producing a much lower rate of growth than expected. Consequently, economic reforms were set in motion on a modest scale, when controls on industries were reduced by the country's 1985 industrial policy. The economic reforms program got a further boost when the government announced a new industrial policy in 1991. In the new, liberalized industrial and trade environment, the government is progressively assuming the role of a promoter, facilitator, and catalytic agent, instead of a regulator and controller of economic activities. India's gradual and cautious approach to economic reforms has proved well-founded and the country is placed on a firm footing for future forays into domestic and global economic activities. It is now much more integrated with the world economy and has benefited from this integration in many ways. This book provides a comprehensive account of India's economic policies and performance over the years, from 1947 to 2015/2016, with a focus on post-liberalization (1991 onward) period. [Subject: India Studies, Economics, Development Studies, History]

Table of Contents:
1. Human and Natural Resources of India 1.1 Human Resources 1.1.1 Pre-Independence Demographic Trends 1.1.2 Post-Independence Demographic Trends 1.1.3 Characteristics of India’s Population 1.1.4 Population as a Retarding Factor in Development 1.1.5 Population Policy 1.1.6 Measures to Control Population 1.1.7 Demographic Dividend Hypothesis 1.1.8 Human Development Index 1.2 Natural Resources 1.2.1 Land Resources 1.2.2 Water Resources 1.2.3 Forest Resources 1.2.4 Mineral Resources 2. Problems and Issues in India’s Development Efforts 2.1 Poverty: Concept, Causes and Incidence 2.1.1 Problem of Poverty 2.1.2 Meaning of Poverty Line 2.1.3 Causes of Poverty 2.1.4 Incidence of Poverty 2.2 Unemployment: Nature and Estimates 2.2.1 Urban Unemployment 2.2.2 Rural Unemployment 2.2.3 Causes of Unemployment 2.2.4 Concepts and Procedures for Classification of Unemployed 2.2.5 Estimates of Unemployment 2.3 Social Security for Vulnerable Groups 2.3.1 Need for Social Security 2.3.2 Social Security Scenario in India 2.3.3 Social Security Concerns for the Unorganized Workers 2.4 Inclusive Growth for Social Justice 2.4.1 Meaning of Inclusive Growth 2.4.2 Need for Inclusive Growth 2.4.3 Essential Components of Inclusive Growth 2.5 Food and Nutritional Security 2.5.1 National Food Security Act, 2013 2.6 Regional Inequalities 2.7 Archaic Labour Laws 2.8 Deterrents to Foreign Direct Investment (FDI) 2.8.1 Bureaucratic Controls and Procedures 2.8.2 Infrastructural Bottlenecks 2.8.3 Image and Attitude 2.8.4 Domestic Policy Constraints 2.8.5 State Obstacles 2.8.6 Legal Delays 2.9 Environmental Concerns 3. Planning Commission and Five Year Plans (I to XII) 3.1 Planning Commission and National Development Council (NDC) 3.2 Objectives of Economic Planning in India 3.2.1 Rapid Economic Growth\ 3.2.2 Removal of Poverty and Unemployment 3.2.3 Reduction of Economic Inequalities 3.2.4 Self-reliance 3.2.5 Balanced Regional Development 3.3 Financing of the Plan 3.3.1 Internal Resources 3.3.2 External Assistance 3.4 First Five Year Plan: 1951-52 to 1955-56 3.5 Second Five Year Plan: 1956-57 to 1960-61 3.6 Third Five Year Plan: 1961-62 to 1965-66 3.7 Fourth Five Year Plan: 1969-70 to 1973-74 3.8 Fifth Five Year Plan: 1974-75 to 1978-79 3.9 Sixth Five Year Plan: 1980-81 to 1984-85 3.10 Seventh Five Year Plan: 1985-86 to 1989-90 3.11 Eighth Five Year Plan: 1992-93 to 1996-97 3.12 Ninth Five Year Plan: 1997-98 to 2001-02 3.13 Tenth Five Year Plan: 2002-03 to 2006-07 3.13.1 Objectives 3.13.2 Macro Parameters 3.13.3 Development Strategy 3.13.4 Growth Target and Achievement 3.14 Eleventh Five Year Plan: 2007-08 to 2011-12 3.14.1 Emphasis on Inclusive Growth 3.14.2 Role of Panchayati Raj Institutions (PRIs) 3.14.3 Monitorable Targets 3.14.4 The 27 National Targets 3.14.5 The 13 State Specific Targets 3.14.6 Size of the Plan 3.15 Twelfth Five Year Plan: 2012-13 to 2016-17 3.15.1 Growth Target 3.15.2 Size of the Public Sector Plan 3.15.3 Monitorable Targets for the Twelfth Plan 3.15.4 Strategy Challenges 3.16 Five Year Plans: A Critique 4. NITI Aayog (National Institution for Transforming India) 4.1 Why was Planning Commission Abolished? 4.2 Functions of NITI Aayog 4.3 Guiding Principles of NITI Aayog 4.4 Broad Objectives 4.5 Structure of NITI Aayog 4.6 How NITI Aayog is Different from Planning Commission? 4.6.1 Financial Powers 4.6.2 Role of States 4.6.3 Organizational Structure 4.7 From Antagonistic Federalism to Co-operative Federalism 4.8 Challenges before NITI Aayog 5. Economic Reforms Since 1991 5.1 India’s Development Pattern: 1950-80 5.2 New Economic Policy, 1985: Precursor to Economic Reforms 5.3 Initiation of Economic Reforms 5.4 Sector-wise Account of Economic Reforms 5.4.1 Agriculture and Rural Development 5.4.2 Industry, Minerals, Infrastructure, and Energy 5.4.3 Fiscal Policy 5.4.4 Monetary Policy and Credit Management 5.4.5 Financial Sector Reforms 5.4.6 Environment, Disaster Management and Climate Change 5.4.7 Foreign Trade, Aid and Investment 5.5 Assessment of Economic Reforms 6. Indian Agriculture and Information Technology (IT) 6.1 Role of Agriculture in the Indian Economy 6.2 Low Productivity of Indian Agriculture 6.2.1 Causes of Low Productivity 6.3 Declining Share of Agriculture in Gross Domestic Product (GDP) 6.4 Post-harvest Losses 6.5 Need for IT-based Services to Farmers 6.6 Rural Portal of Ministry of Rural Development (MoRD) 6.7 National Rural Employment Guarantee Act Software Package (NREGASoft) 6.7.1 Various Modules of the Software 6.8 IFFCO-ISRO Cooperation 6.9 Cyber Dhabas 6.10 E-Choupal 6.11 Kisan Call Centres (KCCs) 6.12 National e-Governance Plan in Agriculture (NeGP-A) 6.13 Other IT Services to Agricultural Sector 6.13.1 LAN at Ministry of Agriculture 6.13.2 Plant Protection Informatics and Communication Network (PPIN) 6.13.3 Agricultural Marketing Information Network (AGMARKNET) 6.13.4 Strengthening of Informatics in the Offices and Field Units of the Department of Agriculture and Cooperation (DAC)–DACNET 6.13.5 MIS Support to Food Processing Industries 6.13.6 Agricultural Extension Information System Network: VISTARNET 6.13.7 Indian Agriculture On-line 6.13.8 Infrastructural Facilities and Services Provided by NIC to the Ministry of Agriculture 6.13.9 Animal Production and Health Information Network (APHNET) 6.13.10 Agricultural Research Information System Network (ARISNET) 6.13.11 Market Information System for Horticulture 6.13.12 Integrated Fertilizer Management Information System (FERMIS) 6.13.13 Activities in the North-Eastern Region 6.14 Computerisation of Agricultural Census and Input Survey 7. Rural Development Policies and Programmes 7.1 Rural Employment 7.1.1 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 7.1.2 Swarnjayanti Gram Swarozgar Yojana (SGSY) 7.2 Rural Industries 7.3 Rural Housing 7.3.1 Indira Awaas Yojana (IAY) 7.3.2 Rural Face of Housing Urban Development Corporation (HUDCO) 7.4 Education and Training in Rural Areas 7.5 Rural Health and Family Welfare 7.5.1 National Rural Health Mission (NRHM) 7.5.2 Janani Suraksha Yojana (JSY) 7.5.3 National Nutrition Mission (NNM) 7.6 Rural Sanitation and Cleanliness 7.6.1 Total Sanitation Campaign (TSC) 7.7 Rural Electrification 7.7.1 Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) 7.8 Rural Water Supply 7.8.1 Swajaldhara 7.9 Rural Transport 7.9.1 Pradhan Mantri Gram Sadak Yojana (PMGSY) 7.10 Rural Telephony 7.10.1 Digital Divide 7.11 Empowerment of Women, Scheduled Castes (SCs), Scheduled Tribes (STs), Disabled and Older Persons in Rural Areas 7.11.1 Scheduled Caste Sub-plan and Tribal Sub-Plan 7.11.2 Disabled Persons 7.11.3 Older Persons 7.12 Rural Infrastructure Development Fund (RIDF) 8. Industrial Policy Liberalization 8.1 Industrial Policy during Formative Years 8.1.1 Regulation and Controls of Private Sector 8.1.2 Absence of Internal Competition 8.1.3 Absence of Foreign Competition 8.2 Disillusionment and Rethinking 8.3 Pressure for Industrial Liberalisation 8.3.1 Internal Factors 8.3.2 External Factors 8.4 New Economic Policy and Industrial Liberalisation, 1985 8.5 Industrial Policy Statement, 1991: The Great U-turn 8.6 Public Sector: Poor Performance and Rethinking 8.6.1 Industrial Policy Statement, 1991 on Public Sector 8.7 Micro, Small, and Medium Enterprises (MSMEs) 8.7.1 Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 8.7.2 Social Face of MSMEs in India 8.7.3 MSMEs and Globalisation 8.7.4 Prime Minister’s Task Force on Micro, Small and Medium Enterprises 9. Infrastructure Development and Upgradation 9.1 India Infrastructure Finance Company Limited (IIFCL) 9.2 Power Sector Reforms 9.2.1 Electricity Act, 2003 9.2.2 National Electricity Policy, 2005 9.2.3 Private Enterprise in Power Sector 9.3 Transport Sector 9.3.1 Indian Railways 9.3.2 Roads and Road Transport 9.3.3 Shipping and Ports 9.3.4 Civil Aviation 9.4 Telecommunications 9.4.1 National Telecom Policy (NTP), 2011 and 2012 9.5 IT and IT-enabled Services 9.5.1 Strategies of Indian IT-BPO Companies 9.6 Special Economic Zones (SEZs) 9.6.1 Special Economic Zones Act, 2005 9.6.2 Criteria for Approval 9.6.3 Incentives and Facilities Offered to Units in SEZs 9.6.4 Incentives and Facilities Available to SEZ Developers 10. Fiscal Policy Reforms 10.1 Fiscal Responsibility and Budget Management (FRBM) Act, 2003 10.1.1 Supplementary Documents on the Budget as Enjoined by the FRBM Act 10.2 Outcome Budget 10.3 Gender Budgeting in India 10.3.1 Ministry of Women and Child Development (MWCD) 10.3.2 Gender Budgeting at the Level of States 10.4 Income Tax 10.5 Wealth Tax 10.6 Union Excise Duties 10.6.1 Triple Rate Excise Structure 10.7 Taxation of Services 10.7.1 Constitutional Amendment 10.8 Customs Duties 10.9 National Level Goods and Services Tax (GST) 10.10 Direct Taxes Code (DTC) 10.11 Sales Tax/VAT 10.11.1 Minimum Rate Agreement among States 10.11.2 Switch Over to VAT 10.11.3 Empowered Committee of State Finance Ministers, 2001 10.11.4 Agreement of January 23, 2002 10.11.5 Agreement of June 2004 10.11.6 Progress of VAT Implementation 11. Monetary Policy, Price Control and Credit Management 11.1 Monetary Policy and Prices 11.1.1 Reserve Bank of India (RBI) 11.1.2 Monetary Policy Objectives 11.1.3 Monetary Transmission Mechanism 11.1.4 Monetary Policy and Prices 11.1.5 Price Stability as an Objective of Monetary Policy in India 11.1.6 Price Policy of the Government 11.1.7 Change in Reporting of Inflation 11.2 Credit Policy and Management 11.2.1 Importance of Credit Policy 11.2.2 Allocation of Credit: 11.2.3 Credit Market Reforms 11.2.4 Flow of Credit to Agriculture and Allied Activities 11.2.5 Credit Flow to Micro, Small, and Medium Enterprises (MSMEs) 11.2.6 Credit to Export Sector 12. Financial Sector Reforms and Financial Regulators 12.1 Financial Sector Reforms 12.1.1 From Financial Repression to Financial Liberalisation 12.1.2 India’s Approach to Financial Sector Reforms 12.1.3 Strategy of Financial Sector Reforms 12.1.4 International Security Standards 12.1.5 Migration to Basel II Norms 12.1.6 Accounting and Auditing Standards 12.1.7 Technological Solutions for Financial Services 12.1.8 Legal Reforms for Strengthening Financial Sector 12.1.9 Achievements of Financial Sector Reforms and Areas of Concern 12.2 Financial Regulators in India 12.2.1 Ministry of Finance, Government of India 12.2.2 Reserve Bank of India (RBI) 12.2.3 Ministry of Corporate Affairs 12.2.4 Securities and Exchange Board of India (SEBI) 12.2.5 Pension Fund Regulatory and Development Authority (PFRDA) 12.2.6 Insurance Regulatory and Development Authority (IRDA) 12.2.7 Monitoring Framework for Financial Conglomerates (FCs) 13. Micro Finance and Financial Inclusion 13.1 Micro Finance 13.1.1 Micro Finance Defined 13.1.2 Role of Micro Finance 13.1.3 Micro Finance Institutions (MFIs) and Self-help Groups (SHGs) 13.1.4 Problem Areas of Micro Finance 13.2 Financial Inclusion 13.2.1 Financial Exclusion and Financial Inclusion Defined 13.2.2 Advantages of Financial Inclusion 13.2.3 Strategies for Financial Inclusion 13.2.4 RBI Measures for Financial Inclusion 13.2.5 Pradhan Mantri Jan-Dhan Yojana (PMJDY), 2014 14. Labour Laws and Employment Programmes 14.1 Industrial Relations: Post-liberalisation Period 14.2 Trade Unions in the Changed Scenario 14.3 Issues in Labour Law Reforms 14.3.1 Complexities in Labour Laws 14.3.2 Inflexibility of Labour Laws 14.3.3 Dualism in Labour Laws 14.3.4 Industrial Disputes Act (IDA), 1947 14.3.5 Contract Labour (Regulation and Abolition) Act [CLRAA], 1970 14.3.6 Inspection System 14.3.7 Limited Coverage and Poor Enforcement 14.4 National Commission for Enterprises in the Unorganised Sector (NCEUS) 14.5 Unorganised Workers’ Social Security Act, 2008 14.6 Second National Commission on Labour (NCL-II), 2002 14.7 Employment Generation Programmes/Schemes 14.7.1 Employment Generation Strategy 14.7.2 Direct Employment Programmes 14.7.3 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 14.7.4 Swarnjayanti Gram Swarozgar Yojana (SGSY) 14.7.5 National Rural Livelihoods Mission (NRLM) 14.7.6 Swarna Jayanti Shahari Rojgar Yojana (SJSRY) 14.7.7 Prime Minister’s Employment Generation Programme (PMEGP) 15. Health and Education 15.1 Health, Family Welfare and Nutrition 15.1.1 Sarva Swasthya Abhiyan (SSA) 15.1.2 National Urban Health Mission (NUHM) 15.1.3 National Rural Health Mission (NRHM) 15.1.4 Twelfth Five Year Plan (2012-17) 15.1.5 Janani Suraksha Yojana (JSY) 15.1.6 Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH) 15.1.7 Growth of Private Sector in Healthcare 15.1.8 Health Insurance 15.1.9 Medical Value Travel in India 15.1.10 Family Welfare 15.1.11 Food and Nutrition 15.2 Education, Training and Skill Development 15.2.1 Constitutional Provisions Regarding Education 15.2.2 Trends in Literacy Rates 15.2.3 Elementary Education 15.2.4 Secondary and Vocational Education 15.2.5 Higher and Technical Education 15.2.6 Medical Education 15.2.7 Adult Education 15.2.8 Skill Development 16. Social Security and Social Justice 16.1 Need for Social Security 16.2 Social Justice Objectives 16.2.1 Twelfth Five Year Plan (2012-17) on Social Justice 16.3 Constitutional Provisions for Weaker Sections 16.4 Concerned Ministries 16.4.1 Ministry of Social Justice and Empowerment 16.4.2 Ministry of Tribal Affairs 16.4.3 Ministry of Minority Affairs 16.5 Scheduled Castes (SCs) and Scheduled Tribes (STs) 16.5.1 Scheduled Castes (SCs) 16.5.2 Scheduled Tribes (STs) 16.6 Other Disadvantaged and Marginalized Groups 16.6.1 Other Backward Classes (OBCs) 16.6.2 De-notified Nomadic and Semi-nomadic Tribes 16.6.3 Minorities 16.6.4 Persons with Disabilities 16.6.5 Older Persons 16.6.6 Social Deviants 16.6.7 Beggars 17. Environment, Disaster Management and Climate Change 17.1 Environmental Protection 17.1.1 Environmental Risks Facing India 17.1.2 Major Central Legislations for Environmental Protection 17.1.3 National Green Tribunal (NGT) 17.1.4 Ministry of Environment and Forests (MoEF) 17.1.5 Central Pollution Control Board (CPCB) 17.1.6 State Pollution Control Boards (SPCBs) 17.1.7 Twelfth Five Year Plan (2012-17) on Environment 17.2 Disaster Management 17.2.1 Disaster Management Strategy 17.2.2 Disaster Management Act, 2005 17.2.3 National Disaster Response Force (NDRF) 17.2.4 National Institute of Disaster Management (NIDM) 17.2.5 Twelfth Five Year Plan (2012-17) on Disaster Management 17.3 Climate Change and India 17.3.1 India’s Approach to Climate Change 17.3.2 National Action Plan on Climate Change (NAPCC) 17.3.3 Prime Minister’s Council on Climate Change 17.3.4 Twelfth Five Year Plan (2012-17) on Climate Change 18. Foreign Trade and Foreign Investment 18.1 Foreign Trade 18.1.1 Post-liberalization (1991 onwards) Reforms in Foreign Trade Sector 18.1.2 Legal and Institutional Framework for Foreign Trade 18.1.3 India’s Exports 18.1.4 India’s Imports 18.1.5 Foreign Trade Policy (FTP), 2015-20 18.2 Foreign Investment 18.2.1 Foreign Direct Investment (FDI) 18.2.2 Foreign Portfolio Investment 19. Indian Economy: A Performance Appraisal 19.1 Achievements of Development Efforts 19.1.1 Changes in the Composition of Gross Domestic Product (GDP) 19.1.2 Breakthrough in Agriculture 19.1.3 Rural Development 19.1.4 Industrial Progress and Diversification 19.1.5 Infrastructure Development 19.1.6 Remarkable Performance of Services Sector 19.1.7 Employment Generation 19.1.8 Health, Family Welfare and Nutrition 19.1.9 Education, Training and Skill Development 19.1.10 Science and Technology 19.1.11 Social Justice 19.1.12 Reasonable Degree of Price Stability 19.2 Areas of Concern 19.2.1 Agrarian Slowdown and Distress 19.2.2 Infrastructural Bottlenecks 19.2.3 Unemployment Backlog 19.2.4 Failure to Ensure Social Justice 19.2.5 Regional Inequalities 19.2.6 Public Debt and Budgetary Deficits 19.2.7 Environmental Degradation 19.3 Overall Assessment 20. Future Prospects and Challenges before the Indian Economy 20.1 Future Prospects 20.1.1 Towards Double-digit Growth Rate 20.1.2 Telecommunications, Information Technology (IT) and Electronics: The Triad of Future Economic Prosperity 20.1.3 Role of the Government in the Changed Scenario 20.2 Challenges Ahead 20.2.1 Empowerment of Marginalised Groups 20.2.2 Dismantling Internal Trade Barriers 20.2.3 The China Factor Bibliography Index