Indian Economy: Before and Since the Reform comprises four parts: Part One discusses the Economic Reform of 1991. Part Two first delineates how countries choose between alternative economic organisations in the light of economic ideas as we have evolved and then extends the main conclusions to the Indian context before the Reform. Part Three examines the working of the Indian economy from the aggregative and sub-aggregative points of view since the Reforms. Part Four first attempts a critical stock-taking of the Reforms with reference to the first generation as well as the second generation policies and measures, then tries to evaluate their impact, and finally asks the question: What has become of the Reform process and its impact on the economy? In its general lay-out this book has been inspired by Gunnar Myrdal’s famous work Asian Drama. It is meant to be a standard reference book which would be of use to a wide range of readership. It is an analytical-cum-empirical research study. The facts and arguments are illustrated with requisite data throughout the book. It seeks to provoke the reader into adopting a critical and creative aptitude and a taste for independence of thought as far as the subject matter of this book is concerned so that the issues facing the country are reflected upon and sorted out effectively. The topics covered in the book are parts of the curricula taught in colleges and university departments. Those taking competitive tests would also benefit from it. Besides, to benefit from it would be the common readers. The book is written in a very simple and lucid manner by an author who has to his credit publication of several works on Economics during 1952-2001 and experience as a university teacher and research guide for over four decades.

Table of Contents:
Volume I Indian Economy : (1991) Economic Reform/Restructuring The New Economic Policy (NEP) Recounting the Events Leading to the Economic Reform Stabilising the BoP Position and Restructuring Trade/ Commercial Policy The Fiscal Crisis and its Defusing/Correction Stabilisation of Domestic Prices as an Element of Stabilisation of the Economy : Dis/Anti-Inflationary Policy Birth of a New Industrial Strategy in 1991 with Reorganised Economic System Public Debt and its Servicing Restructuring of the Planning Approach Before the reform Philosophical Influences/Formulations Choosing Between/Among Alternative Organisations of the Economy : Theories and Thoughts How is the Economy Organised? The Free-Enterprise Economy Classifying the Economic System/Organisation The EconomicSystem/ConstitutestheEconomicSystem The Market Mechanism/Price System as Perceived by Economists Failures of the Market Mechanism in Practice/Action Explaining the Above-mentioned Market Failures Increasing the Efficiency of the Market Mechanism: Prescriptions Environmental Externalities : Public Goods and Bads : Social Costs of the Debasement of the Environment Protecting/Cleaning Up the Environment Competition The Mixed Economy Private/Market Sector Versus Public/Non-market Sector Public Enterprises/Undertakings Indian Economy During 1951—91 : Its Organisation and Working Extensions/Applications of Conclusions Reached in Part II : A To the Indian Case : 52 Years of Indian Planning Indian Planners’ Approach to Relative Prices State’s Extra-Market/Direct Action in a Mixed Economy Indian Planning Since 1951 Conclusion The Socialistic/Socialist Pattern of Society/ Economy in India To what conclusion did this lead? The Equality (Economic and Social)/Justice (Distributive and Social) Goal Volume II Before the Reform (Contd.) The Welfare State Self-Reliance Equality in Another Form : Reduction of Inter- State/Inter-Regional Imbalances/Inequalities/ Inequities Disparities The 1950s The 1960s The 1970s The 1980s The 1990s : The Era of Economic Reform Appendices Appendix 1 Relative Prices and Allocation of Resources Appendix 2 Some Aspects of Profit and Distribution under Growth Place of Profit in a Socialist Economy Economic Growth and Income Shares Appendix 3 Planning as Viewed by the Authors of India’s Five-Year Plans Prior to the 1991 Economic Reforms Appendix 4 Public Sector Enterprises Capacity Utilisation Appendix 5 Seventh Plan’s Enunciation of Monetary, Fiscal, Price and Trade Policies Control of Public Expenditure Fiscal Policy for Growth Monetary and Credit Policy Framework of Controls Price Controls Foreign Trade Policy Appendix 6 The New Deal Appendix 7 Incomes Policy Types of Incomes Policies Importance of Incomes Policy in Economics Positive and Negative Views of Incomes Policy Appendix 8 Some Aspects of External Economic Relations Foreign Exchange Management Exchange Rate Forecasting Foreign Exchange Rates Microeconomic Role Macroeconomic Role Determinants Controversial Issues Since the reform Some Macroeconomic and Regional Ramifications of the Indian Economy National Income and Economic Growth Illustrations with Indian Data Structural Transformation of the Indian Economy Problems and Prospects of Indian Growth and Employment Problems of Growth : An Abstraction From the Current Economic Situation Poverty in India : Growth and Decline India’s Economic Growth with Imbalances India’s Economic Performance Interregionally During 1970—1995 Trends in Distribution of National Income in India Interregionally Influence of Population Growth on States’ Income Growth Stock-Taking of the Reform Process The First Generation Policies, Measures and their Impact Explaining Changes in Growth Assessing Growth The Macrovariables Judging Performance of the Economy The Growth Rate The Sub-Aggregates : The Sectors The Determining Factors Trends in Consumption/Demand List of Our Imports Savings Investment/Capital Formation The ICOR Bank Credit to Private Industry Industry : As A Point of Reference The Problem in Retrospect Public (Sector) Investment Some Aspects of Private Industry and MNCs in the Post-Reform Years Small-Scale Industry Supply of Bank Credit to Industry Public Sector Industry Disinvestment/Privatisation/Denationalisation Public Sector Versus Private Sector Role of State/Public Sector/Planning in a Market-Based Economy Agriculture and Allied Activities Infrastructure/Tertiary Sector/Services Power/Electricity Volume III Stock-Taking of the Reform Process (Contd.) Technology/Technological Know-how/Knowledge Human Factor/Resource-Oriented Social Infrastructure/ Social Sectors/Social Services/Social Overhead Education Health Sanitation, Drinking Water and Housing Social Sector Problems Inequality Unemployment The Financial System Price Stability and Price Administration Inflation (including Core Inflation) Inflation and Growth Interest Rate/Bank Rate and Monetary Policy Post-Reform Monetary Management Role of the Reserve Bank of India The Banking Sector Reform in the Money Market Reform of the Insurance Sector Salient Features of the Insurance Regulatory and Development Authority Act (IRDAA), 1999 Money Versus Capital Market The Stock Market Report of the Narasimham Committee Financial System Reform Process Public Finances Budget and its Balancing Receipts of the Centre Direct and Indirect Taxes Personal Income-Tax Versus Corporation Tax Customs Duties and Excise Duties The Vat Transfer of Resources The Eleventh Finance Commission Revenue Expenditure Developmental and Non-Developmental Revenue Expenditure Non-Plan Versus Plan Expenditure Revenue and GDP Ratio Expenditure on Education, etc. (Social Sector) Food Subsidy Sugar Subsidy Unproductive Expenditure Interest Payments Wages and Salaries Capital Expenditure Financing of the Plans Critique of Planning The Deficits Financing the Deficit Fiscal Reform Rate of Interest, Public Borrowing and Its Impact Total Outstanding Liabilities and Debt : Internal and External Fiscal Restructuring/Fiscal Reconstruction/Fiscal Stabilisation/Fiscal Control/Fiscal Correction/Fiscal Consolidation/Fiscal Reform and All That Revenue-Raising/Resource-Mobilising Augmenting Measures Volume IV Stock-Taking of the Reform Process (Contd.) What has become of the Reform Process and its Impact on the Economy? Growth of the Economy Gaps in the Reform Process Infrastructural Bottlenecks Financial Sector Economic Liberalisation Globalisation Balance of Payments World Trade Organisation (WTO) External Trends Public Finance Economic Reforms and Growth Explaining the Slow-down Getting over the Slow-down Appendi ces Appendix 9 The Poverty Question The Ninth Plan on the Poverty Issue (In the Light of the Revised Estimates) Appendix 10 Socio-Economic Indices and their Interpretation Appendix 11 Inflationary Dynamics of Price Controls Appendix 12 Role of Interest Rate in Supply of Bank Credit to Industry and GDP Growth Appendix 13 Money Supply Appendix 14 Changes in Monetary Policy and Monetary Management during the 1990s : Objectives and Instruments Appendix 15 State and Market : Altering Boundaries and Emerging New Balances Appendix 16 Monetary Policy in India : Objectives, Instruments, Operating Procedures and Dilemmas Appendix 17 Interpenetration of Money Market by Monetary Policy in India Appendix 18 Fiscal and Monetary Policy Interface : Recent Developments in India Appendix 19 Commercial Banking Sector Appendix 20 Harmonisation between Monetary and Fiscal Policies during the Concluding Years of the 1990s Appendix 21 Development and Management of Forex Markets Appendix 22 India’s Economy in the Twenty-First Century Appendix 23 Banking and Finance in the New Millennium Appendix 24 A Critical Study of the Focal Points of the Report of Eleventh Finance Commission Appendix 25 The (New) Export — Import Policy for 2001–2002 Appendix 26 Evolution of Monetary Policy Instruments Appendix 27 External Sector Policies : Shifting Paradigms Appendix 28 Sources of Growth in the Indian Economy Appendix 29 On To-day’s Indian Economy