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India: Economic Policies and Performance-1947-48 to 2015-16
By Vaidehi Shriram Daptardar

First Published : 2015
ISBN : 9788177084115
Pages : 454
Binding : Hardbound
Size : 7 x 9
Price : US$ 127
ABOUT THE BOOK

For almost three decades after Independence (1950-80), development pattern of India was characterised by strong centralised 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.

This so-called inward-looking, import substitution strategy of economic development began to be widely questioned with the beginning of 1980s. Policy makers started realising the drawbacks of this strategy which inhibited competitiveness and efficiency and produced a much lower rate of growth than expected.

Consequently, economic reforms were set in motion, though on a modest scale, when controls on industries were reduced by the 1985 industrial policy. The economic reforms programme got a big boost when the Government announced a new industrial policy in the Indian Parliament on July 24, 1991. Since then, it is liberalisation, privatisation and globalisation all the way and the process is underway. In the new liberalised 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. Presently, India is one of world’s fastest growing economies. Lately, it has emerged as a global economic power, a leading outsourcing destination and a favourite of international investors. Indian economy has matured in several important respects. It is now much more integrated with the world economy and has benefited from this integration in many ways. The outstanding success of information technology (IT) and IT-enabled services (ITES) has demonstrated what Indian skills and enterprise can do, given the right environment. Similar strength is now evident in sectors such as pharmaceuticals, auto components and, more recently in textiles.

This book provides a comprehensive account of India’s economic policies and performance over the years 1947-48 to 2015-16, with focus on post-liberalization (1991 onward) period.


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

ABOUT THE AUTHOR
     

Dr. (Mrs.) Vaidehi Shriram Daptardar is presently Principal and Head of Department of Economics, Adarsh College of Arts and Commerce (University of Mumbai), Badlapur, Thane, Maharashtra. As a distinguished academician for the last 33 years, holding Ph.D. in economics and MBA in finance, she is actively associated with many organizations. She is the founder director of Somaiya Gandhian Studies Centre, Mumbai.

   Dr. Daptardar, recipient of Late Dattaji Tamhane Adarsh Shikshak Puraskar by Dnyansadhana Trust, Thane, has also completed research projects sponsored by University Grants Commission (UGC), New Delhi and University of Mumbai, Mumbai. Apart from authoring books, she has also published articles in journals of repute.

    She has attended and presented papers at various state, national and international conferences/seminars. A prolific academician and administrator, she is a Member of Academic Council, University of Mumbai. Her areas of specialisation include Indian economy, management and finance.


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