India’s economy, which for decades was stuck with the so-called Hindu rate of growth around 3 per cent, has hit the 9 per cent mark for the last two consecutive years. Leading economists hold that the growth can be sustained in the coming years if the government can put in place more reforms and implement them. There is no denying the fact that the initiatives taken in the early 1990s continue to reap the rewards and have enabled India to become the fourth largest GDP in the world in terms of purchasing power. The policy-driven reforms have taken our country from the ‘Third World’ status to one that plays a part, albeit small, in defining the fate of the global economy. The country is in the midst of a great transformation, almost epochal in scope. Everything is positive in the economy today — manufacturing is resurgent, services going strong, revenue collection buoyant, export jumping 37.3 per cent, foreign investment flows strong and no overheating of the economy. There is a new sense of optimism and a willingness to take risk and think big among the business tycoons. Simply put, Indians can get ready to uncork the bubbly to celebrate unprecedented growth in the coming years.
The rapid growing economy, however, brings its own share of problems. Agriculture is not keeping pace with the overall buoyancy and there has been a rise in inflation rate. Besides, poor infrastructure, antiquated labour laws, low quality education for all except the elites, dismal health services, and widening of rural urban disparities are only few of the many constraints which India cannot afford to overlook.
In economy some legs march in the wrong direction, some in the right one. But if there are more right-moving legs, they can negate the wrong ones and move the economy in their direction. The present book seeks to suggest the right initiatives and reforms through its articles and speeches contributed by eminent economists. It emphasises that in the present scenario reform should focus on four areas — concerted efforts to bring about Second Green Revolution, measured strategies to deregulate priority industries, substantial push for infrastructural development, and strong encouragement of manufacturing alongside knowledge-based services. Such measures will undoubtedly ensure inclusive growth in the country and enable the GDP growth not only to reach but even to sustain the magical double-digit figures as projected by many economists. The book aims at acquainting readers with the economic scenario in India in its true spirit on one hand and suggests effective measures to meet the challenges ahead on the other.
It is hoped that the book will be found highly useful by the researchers and students of Economics; government executives, parliamentarians and legislators concerned with the formulation and execution of economic policies; and the general readers keen to know in depth the present state of Indian economy and the challenges ahead.
Dr. K.R. Gupta, the Editor, is a well-known Economist. He has published about a dozen of books and more than hundred papers in reputed journals, being published in India and abroad. He had been teaching postgraduate classes and guiding research for about two decades in the University of Jammu and Kurukshetra University. He has also worked as an Economist in private as well as in public sector. His last assignment was as Economic Advisor to the Modi Enterprises.
