India -- Economic Policies & Performance

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 24 July 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-liberalisation (1991 onward) period.