Foreword

India implemented structural adjustment reforms in the context of the unprecedented economic crisis arising due to acute balance-of-payment problems, mounting external and internal debt, galloping inflation and severe infrastructure constraints. The economic reforms implemented in this context since 1991 have resulted in unprecedented economic changes in the domestic and external sectors of the economy. During the last one-and a-half decades, the economy achieved a relatively high rate of growth compared to earlier periods, attracted more domestic and foreign investment, strengthened the productive base of the economy, achieved rapid technological progress, improved the infrastructural base, contained inflation, achieved steady and sustained improvements in the balance of payments and accumulated substantial foreign exchange reserves.

Over this period, the economy has successfully withstood several threats, such as the Asian financial crisis and the international sanctions following the nuclear tests in India. However, the reforms have not achieved equally positive results in some fronts like generation of employment, expansion of public services, improving the rural infrastructure and raising the economic status of the marginalized sections and those engaged in agriculture and rural activities.

This book edited by Professor B. A. Prakash is a commendable attempt to evaluate the economic reforms and its impact on different aspects of the economy since 1991. It provides a wide coverage of the economy with 34 chapters dealing with economic performance, demography, employment, unemployment, planning, financial and fiscal policy, external sector developments, agriculture, industry, infrastructure, health care, education, poverty, federal finance and decentralized planning.

This book has certain unique features:

1. It has as its central theme, economic reforms and performance of the Indian economy since 1991 and all the chapters have been written by specialists in the area.
2. It has a wide coverage and attempts a critical and in-depth analysis of the developments in all major subsectors of the Indian economy for the last one-and a-half decade.
3. It provides an objective assessment of the reforms, giving the positive as well as negative aspects of the developments. The appendix to the book, which outlines the important economic policy decisions of the Government of India since 1991, will prove useful to all those who are interested in India’s recent economic development.

Due to its wide coverage, the objective assessment of the reforms and the use of authentic data, the book can form a valuable basic reading/textbook for courses on the Indian economy in universities in India and abroad. It will also be useful for general readers, policy makers and all those who are interested in India’s economic development and its experience with liberal reforms.

Dr. Pronab Sen,
Chief Statistician of India
and Secretary, Ministry of Statistics
and Programme Implementation,
5 June 2008
New Delhi