India. Sustaining Reform, reducing poverty. The World Bank - download pdf or read online

By University of Oxford

The Indian economic system is at crossroads. Its financial development over the last 20 years sticks out as the most effective within the constructing global, bringing larger earning and higher amenities to the negative. This quantity, the 1st improvement coverage overview of India by way of the realm financial institution, specializes in the coverage reform priorities of elevating financial progress to eight in step with cent a 12 months, as certain within the 10th Plan, and accelerating poverty relief. It information how you can enhance the administration of India's public assets utilizing socio-economic profiles and exact secondary info. This record should be beneficial for policy-makers, planners, govt organizations, and NGOs. extra it is going to even be learn through lecturers and scholars of economics, these in company and finance, and newshounds and basic readers drawn to India's post-reforms development.ж

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Since the 1991 balance-of-payments crisis, interest rates have been liberalized, India has become more integrated into the world goods and capital markets, and fiscal fundamentals have deteriorated, even relative to the late 1980s. " And India's primary fiscal deficits are larger-indeed, the other three countries have generally run primary surpluses over the last decade (IMF 2002). Cross-country comparisons are complicated by such factors as the currency composition of debt, its maturity, whether the real exchange rate is in equilibrium, whether privatization proceeds are included in revenues (thereby artificially boosting the primary surplus, as in Argentina),21 and the size 21 On this specific point and how it may have put a better complexion on debt dynamics, see Mussa (2002).

Agricultural Policy and Rural Development ✦ Put in place a market-based foodgrain policy that protects the poor through targeted safety nets, while mitigating drastic supply shocks through a cost-effective and well-managed price stabilization mechanism. ✦ Reduce input subsidies that are fiscally unsustainable and distorting input use. Savings should be used to fund more productive investments in agricultural research and extension, rural roads, and rural electrification. ✦ Reduce regulation of domestic trading activities for major agricultural commodities and eliminate remaining trade policy distortions, including subsidized exports of rice and wheat.

1 As a result, the share of the population living below the 1 The conventional definition of poverty equates it with income or expenditure levels. In India, the Planning Commission defines poverty as the level of per capita consumer expenditure sufficient to provide an average daily intake of 2,400 calories per person in rural areas and 2,100 calories per person in urban areas, plus a small allocation for basic nonfood items. This report relies on income poverty estimates from the National Sample Survey's quinquennial rounds ("thick samples" of 1983, 1987/88, 1993/94, and 1999/2000).

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