The deregulation of the Indian economy, which started in the 1980s, received an impetus in 1991. While the balance of payments crisis may have provided the immediate trigger, there were structural and deeper long-term reasons underlying a paradigm shift of the economy in 1991. Thus the period 1992-2004 marks a decisive break with the past trend of macroeconomic growth. Most development indicators are favourable with foreign exchange reserves rising above US$ 130 billion, some segments of manufacturing acquiring international competitiveness, growth of Indian financial system, likely acceleration in IT sector and enhanced trade and investment cooperation between India and ASEAN and East Asian countries. The services sector is expected to gain further momentum from the commodity producing sectors, particularly in the trade, transport and communication segments and in “new economy” activities. But there is a compelling need to make the economy more competitive, open and efficient through appropriate macroeconomic policies and financial standards.
There are many daunting challenges hampering the ushering in of a “new deal”. In the ultimate analysis, the crux of the issue lies in a revival of investment (particularly in manufacturing), a transformation of agriculture, check on deficits of the Central and State governments, privatisation, change in labour laws, availability of efficient and sufficient infrastructure at reasonable cost, rise in per capita income, reduced regional disparities and the social dimension of growth—a sharper focus on employment, health, education and gender equality for broad-based socio-economic ‘inclusive’ development. For, the success of the development strategy requires a sustained and rising income for everyone and removal of poverty and deprivation within a reasonable time frame.
The book would be useful to a wide cross section of the reading public, including scholars and academics, government executives, international institutions, business communities and planners and policymakers.
Manoranjan Sharma is the Chief Economist of Canara Bank, the premier bank of the country in terms of almost all parameters. Shri Sharma has a brilliant multi-disciplinary background, viz. a First Class First Master’s degree in Economics and a First Class Postgraduate Diploma in Business Management (equivalent to MBA). With extensive experience in managing policy and strategic processes, he has incisively analysed different facets of the macro-economy and has proven track record in economic policy research. This is clearly reflected in about 150 works, spanning over a period of twenty years, published in leading national and international journals, books, economic newspapers, etc.
Of the over 15 lakh persons working in India’s banking and financial sector, Shri Sharma is the only professional, whose papers, on the basis of a rigorous “double-blind review”, have been repeatedly accepted for important national and international conferences. These include Global Finance Conference—Las Vegas, USA (April 2004); Conference on Emerging Issues in Business and Technology—Western Illinois University, USA (October 2004); Applied Business Research Conference—Walt Disney World, Florida, USA (January 2005); 4th International Symposium Economy & Business 2005, Bulgaria (September 2005); International Applied Business Research Conference in Puerto Vallarta, Mexico (March 2005); Global Business and Economic Research Conference—Istanbul, Turkey (August 2005); Conference on Money and Finance—Indira Gandhi Institute of Development Research (IGIDR), Mumbai; International Symposium on Development Policies and Options for the Next Millennium—IGIDR, Mumbai; Foundation Day National Seminars—National Institute of Rural Development (NIRD), Hyderabad, etc. The high-powered Expert Committee on Rural Credit set up by NABARD relied on many of his ideas for formulation of its views and the Bankers Institute of Rural Development (BIRD), Lucknow identified him as an expert to review Research Project of the Swiss Agency for International Cooperation (SDC).
