Second Generation Economic Reforms In India

Papers presented at the 83rd Annual Conference of Indian Economic Association held at Jammu during December 30, 2000 to January 1, 2001.

This Book On The First To Second Generation Economic Reforms And Beyond, Will Be Of Great Use To Economists And Industrialists, Managers And Executives, Students And Scholars Of Business Management, Commerce, Economics, And To Planners And Policy Makers.

India today occupies the centre stage in the global arena, and economists the world-over are bullish on india`s unprecedented economic growth in the last ten years and it growth prospects for the future. The large pool of human capital—a young, talented and well-educated workforce—is one of the major drivers of economic growth in the country. Rapid strides in knowledge-based industries, especially information technology, rejuvenation of the manufacturing sector, revolution in the agricultural sector and resurgence in exports have made India one of the fastest growing economies in the world. The opening up of the economy and growth in entrepreneurship has made India a sought-after destination for foreign investment. The authors argue that this situation is a result of first generation economic reforms, initiated primarily by the central government. For inclusive growth, the onus is on state governments to carry forward a second generation of reforms. In this context, the book examines: - The state of the Indian economy after one and a half decades of liberalisation and its role in the fast changing global economy; - the economic performance of various Indian states during this period; and - sectors that have done well and those that need substantial improvement in terms of adoption and implementation of reform measures.

The phenomenal rise of India in the global economy has been attributed to a whole host of factors, the major ones being the focus on economic reforms and the demographic dividend that India currently enjoys due to its demographic transition. The large pool of human capital - a young, talented and well-educated workforce - is one of the major drivers of economic growth in the country. Rapid strides in knowledge-based industries, especially information technology, biotechnology and pharmaceuticals; rejuvenation of the manufacturing sector, revolution in the agriculture sector; and, resurgence in exports have made India one of the fastest growing economies in the world. A market-oriented approach to development, opening up of the economy and the growing economies of scale and scope for Indian enterprises, access to 'modern' technology - especially information technology - and growth in entrepreneurship have made India a sought-after destination for foreign investment. The authors argue that this situation is a result of the implementation of a set of first generation economic reforms, initiated primarily by the Central government but the responsibilities of which are now on the State governments. To carry the second generation of reforms forward in a meaningful manner, action has now shifted to the states. With this background, this book primarily examines the following: - The state of the Indian economy after one and a half decades of liberalisation and its role in the fast changing global economy - The economic performance of various Indian states during this period - Sectors that have done well and those that need substantial improvement in terms of adoption and implementation of reform measures.

The Government Of India Has Recently Introduced A Number Of Second Generation Reforms. But Unfortunately It Has Not Been Possible To Keep Up The Desired Pace Because Of Resistance From The Opposition, And Also From Some Allies On Certain Matters. The Opposition Is Guided Mainly By Political Considerations Rather Than Economic Considerations.In Order To Face Competition In The Fast Opening World Market, Some Of The Needed Reforms Are Likely To Adversely Affect The Economic Well-Being Of The Underprivileged Classes Particularly In Rural Areas And Those Engaged In The Small Scale Sector. Ten Years Of Economic Reforms Have Not Generated Adequate Employment. In Order To Mitigate Such Adverse Effects, Outlay Should Be Considerably Increased In The Rural Areas. This Increased Expenditure Should Be On Building Infrastructure And Other Assets And Not On Subsidies Guided By Political Considerations. Primary Education And Health Services Need Considerably Enhanced Outlays. Safety Valves In The Form Of Comprehensive Social Security Network Are Very Essential For Avoiding Tensions In Society And Lessening Opposition To Reforms.The Volume Has A Wide Coverage And Includes Papers Written By Nineteen Economists Spread Over The Whole Country. The Papers Closely Examine Important Implications And Impact Of Liberalisation And Globalisation Measures Taken By The Government In Recent Years.It Is Hoped That The Book Will Prove Very Useful To The Researchers And Students Of Economics, Businessmen, Government Executives Concerned With The Formulation And Execution Of Economic Policies, Parliamentarians And Legislators, And The Common Readers Interested In Knowing The Changes That Are Taking Place In Our Economy.