This book provides a comprehensive description and analysis of developments in various sectors of the Indian economy since Independence. It particularly focuses on the following sectors: agriculture, industry, fiscal policy, money and prices, banking and finance, and foreign trade. Year-wise (1947-48 to 2008-09) review of developments in these sectors of the economy is another key feature of the book. It also provides time-series data on Indian economy.

The work is organised into 8 parts.

Part I is introductory in nature, tracing the main developments in the Indian economy since Independence in 1947.

Part II traces the developments in Indian agriculture during the post-Independence period and examines current issues pertaining to this vital sector of the Indian economy.

Part III is devoted to Indian industry. It records changes in industrial policy during the post-Independence period, explains the key reform measures undertaken for making Indian industry internationally competitive and examines current issues pertaining to this sector.

Part IV covers fiscal policy. It provides an account of fiscal developments in India since Independence and explains the fiscal policy reforms during the post-liberalisation period with particular emphasis on tax reforms.

Part V traces the evolution of India`s monetary policy and price policy.

Part VI deals with banking and finance. It explains developments in India`s financial system with particular emphasis on post-1991 reforms.

Part VII describes and examines changes in the pattern of foreign trade since Independence, with focus on developments since 1991.

Part VIII contains time-series data on the Indian economy.

The book is designed to interest a cross-section of readers, viz. teachers and students of economics, commerce, law, public administration, business management, chartered accountancy and company secretaryship. It will also serve the needs of legislators, business executives, entrepreneurs and investors, and others interested in the developments in the Indian economy.

1. Indian Economy Since Independence: An Overview - Economic Scene on the Eve of Independence; From Regulations and Controls to Economic Liberalisation; Human Resources; Economic Planning; Agriculture; Industry; Infrastructure Development; Fiscal Policy; Money and Prices; Banking and Finance; Employment and Labour Welfare; Human Development and Social Security; Environment; Foreign Trade.

2. Indian Agriculture: Major Developments and Initiatives - Nature and Importance of Agriculture in the Indian Economy; Agriculture in the Constitution of India; Role of Agriculture in the Indian Economy; Use Distribution of India`s Geographical Area; Cropping Pattern in Indian Agriculture; Classification of Agricultural Crops; Subsistence Nature of Farming; Small-sized Agricultural Holdings; Reasons for Small Holdings; Disadvantages of Small Holdings; Farm Size and Productivity; Low Productivity of Indian Agriculture; Causes of Low Productivity; Land Reforms; Aspects of Land Reforms; Critical Appraisal of Land Reforms in India; Recent Plans on Land Reforms; Eighth Five Year Plan (1992-97); Ninth Five Year Plan (1997-02); Tenth Five Year Plan (2002-07); Approach Paper to Eleventh Five Year Plan (2007-12); Agricultural/Rural Credit; Credit Needs of the Indian Farmers; Sources of Rural Credit; Co-operative Societies; Micro Finance; Kisan Credit Cards (KCCs); Moneylenders; Marketing of Agricultural Produce; Present System of Marketing; Measures to Improve Agricultural Marketing; Inter-Ministerial Task Force on Agricultural Marketing; Salient Features of the Model Act for State Agricultural Produce Marketing (Development and Regulation) Act, 2003; New Agricultural Strategy/Green Revolution; Scope and Achievements of High Yielding Variety (HYV) Programme; Problems Created by Green Revolution; Inter-regional Inequalities; Inter-personal Inequalities; Inter-crop Imbalances; Fluctuating Output; Neutrality to Scale; Social Costs; Agricultural Price Policy, Food Subsidy and Public Distribution System; Minimum Support Prices; Food Subsidy; Public Distribution System (PDS); Targeted Public Distribution System (TPDS); Recent Initiatives in Indian Agriculture; National Agriculture Policy, 2000; Protection of Plant Varieties and Farmer`s Rights Legislation; Development of Food Processing Industry; Agricultural Exports and Imports; Agricultural Exports; Agriculture-export Zones; Agricultural Imports; Protecting Domestic Agriculture; Vishesh Krishi Upaj Yojana; Oilseeds/Edible Oils: Widening Shortfall; Policy Initiatives for New Employment Opportunities; Crop Diversification Measures; Emphasis on Horticultural Crops; Agricultural Diversification in the 2005-06 Union Budget; Recent Initiatives to Boost Plantation Sector; Marine Fishing Policy, 2004; Policy Objectives; Main Provisions of the Policy; National Commission on Farmers; Eleventh Five Year Plan (2007-12) on Agriculture.

4. Indian Industry: From Controls and Regulations to Liberalisation and Privatisation - Legal Framework for Industrialisation; Constitutional Provisions; Industrial (Development and Regulation) Act, 1951; Monopolies and Restrictive Trade Practices (MRTP) Act, 1969; FERA and FEMA; Competition Act, 2002; Post-Independence Industrial Policy; Industrial Policy Resolution, 1948; Industrial Policy Resolution, 1956; Categorisation of Industries; Other Features; Industrial Policy Statements 1973, 1977 and 1980; Industrial Policy, 1950-80: A Critique; Expansion of Public Sector; Regulation and Controls of Private Sector; Pressure for Industrial Liberalisation; New Economic Policy and Industrial Liberalisation, 1985; Industrial Policy Statement, 1991; Public Sector Enterprises; Objectives of Public Sector Enterprises; Industrial Policy Statement, 1991 on Public Sector; Public Sector Disinvestment Commission; Classification of Industry Groups; Objectives and Strategy; Loss-making PSUs; Profit-making PSUs; Criteria for Disinvestment; Supreme Court Judgement, September 16, 2003; Public Sector at the State Level; Future of Public Sector; Small-scale Industries; Introduction; Modern Small Industries; Traditional Industries; Arguments for Small-scale Industries; High Employment Potential; Widely Dispersed Entrepreneurial Base; Relatively Low Capital Investment; Regional Balanced Development; Export Potential; Problems of Small Industries; Technological Obsolescence; Inadequate and Irregular Supply of Raw Material; Imperfect Knowledge of Market Conditions; Inadequate Availability of Finance and Credit; Lack of Infrastructural Facilities; Deficient Managerial and Technical Skills; Policy Measures to Help Small Industries; Reservation of Items for Exclusive Production by Small-scale Industries (SSI); Excise Duty Concessions; Priority in the Disbursement of Loans by the Financial Institutions; Other Concessions; Recent Policy Initiatives for Promoting Small Industries; Small-Scale Industries in the 2006-2007 Union Budget; Micro, Small and Medium Enterprises Development (MSMED) Act, 2006: Main Provisions; Conclusion; Industrial Relations and Restructuring of Labour Laws; Industrial Relations: Post-Independence Trends; From Laissez Faire to State Intervention; First National Commission on Labour, 1969; Declaration of Emergency, 1975; Post-Emergency to 1990; Post-liberalisation Period (1991 onwards); Contract Labour; Meaning and Forms of Contract Labour; Contract Labour (Regulation and Abolition) Act, 1970; Employers` Viewpoint; Workers` Viewpoint; Issues in Regulating Contract Labour; Industrial Disputes Act, 1947; National Commission on Labour, 2002; Labour Reforms: A Touchy Issue; Industrial Sickness; Causes of Industrial Sickness; External Causes; Internal Causes; Measures to Help Sick Industrial Units; Government Policy Regarding Nationalisation of Sick Industrial Units.

6. India`s Fiscal Policy: From Fiscal Adjustments to Fiscal Accounting - Central Government Budget; Annual Financial Statement; Revenue Budget; Revenue Receipts; Revenue Expenditure; Capital Budget; Capital Receipts; Capital Expenditure; Various Measures of Budget Deficit and Their Significance; Overall Deficit (or Budgetary Deficit); Fiscal Deficit; Revenue Deficit; Primary Deficit; Monetised Deficit; Fiscal Responsibility and Budget Management Act (FRMBA), 2003; Trends in Combined (Centre and States) Tax Revenues; Trends in Tax-GDP Ratio; Trends in the Relative Significance of Direct and Indirect Taxes; Reversal of Roles; Trends in Central Taxes; Direct and Indirect Taxes; Composition of Direct Taxes; Income Tax; Wealth Tax; Composition of Indirect Taxes; Union Excise Duties; Service Tax; Customs Duties; Trends in State Taxes; Direct and Indirect Taxes; Composition of Direct Taxes; Composition of Indirect Taxes; Local Finance; Public Expenditure in India; Classification of Public Expenditure in India; Structure of Revenue Expenditure; Structure of Capital Expenditure; Factors Responsible for Increase in Public Expenditure; Public Expenditure Policy; Public Debt in India; Rationale for Government Borrowings; Constitutional Provisions Pertaining to Public Borrowings in India; Instruments of Government Borrowings in India; States` Indebtedness; Recent Trends in Central Government Liabilities; Debt Restructuring Suggested by the Twelfth Finance Commission; Centre-State Financial Relations; India: A Federal Polity; Rationale for Constitutional Arrangements; Sharing of Central Taxes; Centralisation of Revenues and the Need for Transfers; Mechanism of Central Transfers to the States; Transfer of Resources through the Finance Commission; From Itemised Sharing to Global Sharing

8. Monetary Management and Price Policy in India: Controlled Expansion with Economic Stability - Monetary Policy; Objectives; Monetary Policy-Fiscal Policy Interface; Measures of Money Supply in India; Reserve Bank of India`s Monetary Policy; Monetary Policy Reforms Since 1991; Ways and Means Advances (WMA) Replace Treasury Bills; Reactivation of the Bank Rate; Deregulation of Interest Rate; Deregulation of Credit; Credit Policy in India; Allocation of Credit between Government and the Private Sector; Inter-sectoral Allocation of Institutional Credit; Inter-regional Allocation of Credit; RBI`s Internal Group on Liquidity Adjustment Facility; Recommendations Regarding Day-to-day Liquidity Management; Recommendations Regarding Sterilisation; Changing Monetary Policy Paradigm in India; Recent Challenges; Price Rise Defined; How is Price Rise Measured?; Need to Monitor and Moderate Price Rise; Causes of Price Rise; Excess of Demand; Lack of Supply; Other Factors; Effects of Price Rise; Determinants of Price Policy; Constituents of Price Policy; Fiscal Policy; Monetary Policy; Commercial Policy; Role and Coverage of Controls; Role of Buffer Stock Operations; Price Policy of the Government; Demand Side; Supply Side; Agricultural Sector; Industrial Sector.

10. Banking and Financial Markets in India: From Financial Repression to Financial Openness- Financial System of India: An Introduction; Post-Independence Developments; Nationalisation of Imperial Bank of India (1955); Nationalisation of Life Insurance Business (1956); Nationalisation of Commercial Banks (1969 and 1980); Nationalisation of General Insurance Business (1973); Rethinking on Government Domination of Financial Sector; From Financial Repression to Financial Liberalisation (1991 onward); Reserve Bank of India; Functions of RBI; Sole Currency Authority; Banker to the Governments; Bankers` Bank and Lender-of-the-last-resort; Controller of Money and Credit; Controller of Foreign Exchange; Source of Economic Information; Promotional Role of RBI; Commercial Banks; Classification of Commercial Banks in India; Post-Independence Developments in Commercial Banking; Pre-nationalisation Period; Post-nationalisation Period; Banking Sector Reforms since 1991; Objectives of Banking Sector Reforms; Contents of Banking Sector Reforms; Co-operative Banks; Development Finance Institutions; The Changed Scenario; Non-banking Financial Companies; Mutual Funds; 10.8 Money Market; Meaning and Functions of Money Market; Reserve Bank of India (RBI) and the Money Market; Developments in the Money Market since 1991; Government Securities Market; RBI and the Government Securities Market; Post-1991 Measures to Promote Government Securities Market; Fiscal Responsibility and Budget Management (FRBM) Act, 2003; Capital Market; Meaning and Importance; Stock Market; Capital Market in the Pre-reforms (i.e. Pre-1991) Period; Establishment of Securities and Exchange Board of India (SEBI); Reforms in the Capital Market since 1991; New Capital Issues: Introduction of Free Pricing; Disclosure Norms; Transparency and Efficiency; Shortening of Settlement Cycle; Strengthening Regulatory Framework; Derivatives Market; Insurance Market; Nationalisation of Insurance Business; Nationalisation of Life Insurance (1956); Nationalisation of General Insurance Business (1973); Reinsurance Business; Weaknesses of Insurance Industry Prior to Reforms of Late 1990s; Low Productivity; Lack of Information Technology; Limited Availability of Insurance Products; Poor Quality of Insurance Services; Committee on Reforms in Insurance Sector (Chairman: R.N. Malhotra), 1994; Indian Insurance Business: Current Status; Foreign Exchange Market; Foreign Exchange Regulation Act (FERA), 1947; Foreign Exchange Regulation Act (FERA), 1973; Foreign Exchange Management Act (FEMA), 1999; Foreign Exchange Policy Initiatives since 1991; Introduction of Liberalised Exchange Rate Management System (LERMS); Current Account Convertibility; Capital Account Convertibility (CAC)

12. Foreign Trade of India: From Protectionism to Openness - India`s Post-Independence Trade Policy; Partition and the Aftermath; Depletion of Sterling Balances; Empire Dollar Pool; Devaluation of the Rupee in September 1949; Korean War and the Export Boom; Trade Agreement with Pakistan, 1950; Devaluation of the Rupee in June 1966; Import Substitution: Cornerstone of Trade Policy; Balance of Payments Crisis, 1991; Post-1991 Reforms in Foreign Trade Sector; East Asian Crisis; Tenth Five Year Plan (2002-07) on the Role of Foreign Trade; Eleventh Five Year Plan (2007-12) on Trade Liberalisation; India`s Look East Policy; India`s Share in World Trade; Summing Up; Exports: Trends in Composition, Destination and Strategy; Post-Independence Export Performance; Trends in the Composition of Exports; Project Exports from India; India`s IT Sector; Gems and Jewellery: Recent Export Measures; Trends in the Destination of Exports; Export Strategy and Concerns; Reservations for Small-Scale Industries and Export Growth; Competitiveness of Exports; Medium Term Export Strategy (MTES); Future of India`s Exports; Imports: Trends in Composition and Origin; Trends in the Composition of Imports; Import Intensity of Exports in India; Trends in the Origin of Imports; Reduction in Tariff and Non-tariff Barriers; Future of India`s Imports; India`s Export-Import (EXIM) Policy; EXIM Policy, 1992-93 to 1996-97; EXIM Policy, 1997-98 to 2001-02; Objectives; Salient Features; EXIM Policy, 2002-03 to 2006-07; Special Economic Zones (SEZs); Employment Generation; Technology Upgradation; Growth-oriented; Foreign Trade Policy (FTP) 2004-05 to 2008-09; Objectives and Strategy; Special Focus Initiatives; New Export Promotion Schemes; Simplification, Rationalization and Modifications of Ongoing Schemes; Simplification of Rules and Procedures and Institutional Measures; WTO and India`s Foreign Trade; WTO: An Introduction; Third Trade Policy Review of India at WTO (June 2002)

Table 1 Gross National Product, Net National Product and Per Capita Net National Product: 1950-51 to 2006-07 (1999-2000 series)

Table 2 Trends in the Production of Foodgrains in India: 1950-51 to 2006-2007 (Million tonnes)

Table 3 Index Numbers of Industrial Production: 1981-82 to 2006-07

Table 4 Combined Tax Revenue, Breakdown between Direct and Indirect Taxes with Percentage Shares, and Tax-GDP Ratios: 1950-51 to 2006-07

Table 5 Components of Money Stock: 1970-71 to 2006-07

Table 6 Wholesale Price Index: 1993-94 to 2006-07

Table 7 Savings Deposits with Scheduled Commercial Banks: 1951-52 to 2004-2005

Table 8 Trends in Call Money Rate, Exchange Rate, BSE Sensex and NIFTY: 1965 to 2008

Table 9 Trends in India`s Trade Balance: 1971-72 to 2007-2008