Economic Policy Reforms and the Indian Economy

Economic Policy Reforms and the Indian Economy

Anne O. Krueger

Print publication date: 2013

ISBN: 9780226454528

Publisher: University of Chicago Press

Abstract

India is the second most populous country in the world and also one of the poorest. From the late 1940s to 1980, India's per capita income grew at an average annual rate of only two percent. Expansionist economic reforms during the 1980s boosted economic growth but also unfortunately resulted in high inflation and a balance of payments crisis. As a consequence, in 1991 the government announced sweeping new changes in economic policies. This book evaluates the effects of those changes and identifies areas of the Indian economy still in urgent need of reform. After an overview of Indian economic policies and development since independence, papers focus on the country's fiscal situation, the environment for private economic activity, education, the reservation of certain activities for small-scale industry, and determinants of differentials in rates of growth across the different Indian states. Contributors include academic specialists on India and policy reform, high-level Indian administrators, and present and past policymakers.

Table of Contents

Introduction

Anne O. Krueger

I Current State of the Economy

1 The Indian Economy in Global Context

Anne O. Krueger and Sajjid Chinoy

2 India's Fiscal Situation

T. N. Srinivasan

II Private Economic Activity

4 Doing Business in India

Naushad Forbes

5 Bangalore

AnnaLee Saxenian

IIIGovernment Activity

8 Does Economic Growth Increase the Demand for Schools?

Andrew D. Foster and Mark R. Rosenzweig