Development pattern of India during the first three decades (1950-80) after attaining Independence in 1947 was characterised by strong centralised planning, government ownership of basic and key industries, excessive regulation and control of private enterprise, trade protectionism - through tariff and non-tariff barriers - and a cautious and selective approach towards foreign capital. It was a quota, permit and license regime all the way, guided and controlled by a bureaucracy trained in colonial style. This so-called inward-looking, import substitution strategy of economic development began to be widely questioned with the beginning of 1980s. Policy makers started realising the drawbacks of this strategy which inhibited competitiveness and efficiency and produced a much lower rate of growth than expected. After assuming power at the Centre, the Government of Prime Minister Rajiv Gandhi introduced a series of measures - through 1985 Industrial Policy - to reduce control on industries, particularly large ones. These measures, described as New Economic Policy, coincided with the policy framework of the Seventh Five Year Plan (1985-90). The process of economic reforms initiated in 1985 got a big boost when the Government of Prime Minister P V Narasimha Rao announced a new industrial policy in the Indian Parliament on July 24, 1991. The new policy introduced radical changes "to unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic controls". The new policy was widely welcomed for ensuring competitive and market economy in place of the outmoded command and controlled economy. Many saw it as a reversal of the 1956 Industrial Policy Resolution. After the reforms, the Indian economy has been growing faster than its historical growth rate. Tenth Five Year Plan (2002-07) recorded annual growth rate of 7.2 per cent and the underway Eleventh Five Year Plan (2007-12) aims to achieve 9.0 per cent growth rate per annum. On the flip side, India's high growth rate is all very well but its moral virtues - in terms of equity and environment - are falling by the wayside. In other words, the growth process must be made as inclusive and as environment-friendly as possible. Of late, Government has become complacent in introducing further reforms. Opening up retail sector to foreigners, implementation of infrastructure projects, flexible labour laws and implementation of National Level Goods and Services Tax (GST) are some of the key reform measures being awaited keenly. This book provides a comprehensive account and assessment of reform measures introduced in various sectors of the Indian economy during the last 20 years (1991-2011). The sectors covered include agriculture, rural development, industry, minerals, infrastructure, energy, fiscal policy, monetary policy, credit management, financial institutions, financial markets, financial instruments, labour laws, employment generation, health, education, empowerment of disadvantaged and vulnerable groups, environment, disaster management, climate change, foreign trade, foreign debt/aid and foreign investment.

The resource base of a country consists of human resources, non-renewable resources which are an endowment of nature and whose total size gets depleted with time and renewable resources which can be continuously created and whose base can be expanded through human efforts. Economic planning is concerned with the effective and optimal utilisation of the potential resources of an economy. This is particularly so in the context of underdeveloped countries which are striving to raise the standard of living of the masses. In fact, planning is a process aiming not merely at the best utilisation of material resources but also at the development of human faculties and institutional framework suitable to the needs and aspirations of the people. The establishment of Planning Commission in 1950 heralded a new era in the economic history of India. It makes an assessment of the material, capital and human resources of the country, including technical personnel, and investigates the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation's requirements. It, then, formulates a Plan for the most effective and balanced utilisation of the country's resources. India's First Five Year Plan was launched on April 1, 1951. Since then, ten Five Year Plans have been completed and the Eleventh Five Year Plan (2007-08 to 2011-12) is underway. Part I of the book deals with human and natural resources of India, principles of economic planning, institutional framework of economic planning in India, and assessment of India's experience with economic planning. Part II provides summary of each Five Year Plan (First Plan to Eleventh Plan) under the following 13 common theme headings: Plan at a Glance; Agriculture and Rural Development; Industry and Infrastructure; Mineral Resources; Electricity and Other Renewable Energy Sources; Urban Development and Housing; Transport and Communications; Employment and Labour Welfare; Health, Family Planning and Nutrition; Education, Training and Skill Formation; Science and Technology; Social Welfare; and, Balanced Regional Development. Part III contains sector-wise time-series statistics on the Indian economy from 1950-51 to 2009-10. Part IV of the book comprises glossary of economic planning and a list of English equivalents of select Hindi terms used in Plan Documents.

As a financial blueprint of any government, the budget is the important instrument to carry out the government's policies and programs. This book provides an exhaustive and analytical account of budgetary developments in India since the country's independence in 1947, with a focus on post-1991 reforms. The book is organized into eight parts, each containing information that deals with some aspect of budgetary policy in India. Areas of discussion include: the economic role of modern governments, particularly in developing countries * various reasons for state intervention in the working of an economic system with special reference to the provision of public goods * the constitutional provisions and parliamentary procedures and controls applicable to the budgetary exercise of the government of India * the structure of the central government budget * the functional, economic, and cross-classification of the budget * recent budgetary reforms in India including gender budgeting * the taxes, expenditures, subsidies, and debt liabilities of the central government, as well as the taxes of the state governments * the nature of center-state and state-local financial relations in India and the existing arrangements for inter-governmental financial transfers * highlights and summaries of each central government budget from 1947-48 to 2009-10 * appendices which provide supplementary information related to the budgetary exercise of the government of India * a glossary of budgetary terms * and time-series budgetary data.

India's present fiscal structure is the result of a gradual evolution, along decentralized lines, dating back to December 14, 1870 when a resolution was issued by Lord Mayo, Viceroy of India. Fiscal federalism is a subject of topical interest in India in view of some recent developments of historical importance. For example, the passage of the Constitution (Seventy-fourth Amendment) Act, 1992 was a landmark in the history of municipal administration in India. As a result, panchayats (village councils) and municipalities are now constitutional bodies forming the third tier of the federal polity of India. Furthermore, the Constitution (Eightieth Amendment) Act, 2000 significantly changed the manner of distribution of central tax collections between the central and state governments. This book provides a detailed description and analysis of the evolution and the present nature of center-state financial relations in India. It explains the existing constitutional arrangements for intergovernmental financial transfers and the role of the Finance Commission and the Planning Commission in effecting these transfers. The book consists of 27 chapters which explain different dimensions of fiscal federalism in India. There are 8 appendices which provide supplementary information related to center-state financial relations. Also included is a glossary of fiscal terms.

Taxation in India 1925 to 2007 provides an exhaustive and critical account of the various aspects of the Indian tax system. It places current developments in the field of taxation in perspective. This work traces the structural evolution, explains the legal framework, and describes the present system of taxation. The book reproduces edited extracts from the reports on taxation published by the government of India between 1925 and 2006. The book also contains time-series data (1950-51 to 2004-05) on tax revenues of central and state governments in India.

Among the various indices of ability-to-pay taxes, income is regarded by far the most appropriate. Part I of this book examines various analytical and policy issues associated with the designing of an income tax system. Part II of the book describes in simple language the otherwise complex law of income tax in India. It traces, in brief, the history of income tax legislation in India and describes the existing constitutional provisions and legal framework of income tax. Besides, it states the main provisions of the Income Tax Act, 1961 and explains the law and procedure of assessment of taxable income. Finally, it critically evaluates the present system of income tax in India.

Government budgeting is a dynamic subject. In India, budgetary reforms are a part of the ongoing efforts to liberalise and globalise the Indian economy. Significant changes have occurred in India's budgetary policy in the recent past. The purpose of this book is to explain the concepts and processes involved in the budgetary exercise of the Government of India. It is useful for those who are interested in understanding the mechanics of government budgeting. The book describes the structure of the Central Government Budget, including its economic classification. Parliamentary procedures and controls applicable to budgetary activities of the Government are explained in detail. Interface between the Central and State Government.

Economic planning is concerned with the effective and optimal utilisation of the potential resources of an economy. This is particularly so in the context of underdeveloped countries which are striving to raise the standard of living of the masses. In fact, planning is a process aiming not merely at the best utilisation of material resources but also at the development of human faculties and institutional framework suitable to the needs and aspirations of the people. The establishment of Planning Commission in 1950 heralded a new era in the economic history of India. It makes an assessment of the material, capital and human resources of the country, including technical personnel, and investigates the possibilities of augmenting such of these resources as are found to be deficient in relation to the requirements of the country. It, then, formulates a Plan for the most effective and balanced utilisation of these resources. Indias First Five Year Plan was launched on 1 April 1951. Since then, eleven Five Year Plans have been completed and the Twelfth Five Year Plan (2012-13 to 2016-17) is underway. This book provides a comprehensive account of various aspects of economic planning in India. It traces the structural changes which have transformed India from a traditional agricultural economy to a technologically strong, industrially diversified and militarily powerful country. Part I of the book contains two chapters: Chapter 1 explains the determinants and constraints of economic development. Chapter 2 describes the principles of economic planning. Part II comprises of five chapters: Chapter 3 deals with human and natural resources of India. Chapter 4 discusses the problems and issues in Indias development efforts. Chapter 5 explains the institutional framework for economic planning in India. Chapter 6 records achievements of Five Year Plans. Chapter 7 highlights the areas of concern and makes an overall assessment of the planning experience. Part III contains two chapters: Chapter 8 provides sector-wise account of economic reforms in India (1991 to 2013). Chapter 9 discusses future prospects and challenges before the Indian Economy. Parts IV to XV provide sector-wise summary of and sector-wise edited extracts from each of the Five Year Plans (I to XII) under the following 12 common theme headings: 1. Agriculture and Rural Development. 2. Industrial Policy and Public Sector. 3. Mineral Resources. 4. Electricity and Other Renewable Energy Sources. 5. Urban Development and Housing. 6. Transport and Communications. 7. Employment and Labour Welfare. 8. Health, Family Planning and Nutrition. 9. Education, Training and Skill Development. 10. Science and Technology. 11. Social Welfare.12. Balanced Regional Development. The 12 theme headings cover almost all the sectors of the Indian economy. Reader will find it easy to comprehend how a particular sector of the Indian economy was treated in terms of priority, strategy, and allocation of resources in the successive Plans. Part XVI contains sector-wise time-series data on the Indian economy from 1950-51 to 2011-12. The book would be useful for a cross-section of academic community and researchers, both in India and abroad. It will also serve the needs of legislators, business executives, entrepreneurs and investors, and others interested in the developments in the Indian economy.

The financial turmoil which surfaced in August 2007 in the US financial system, as a result of defaults of sub-prime mortgage loans, has blown into an unprecedented financial crisis engulfing international money, credit, equity, and foreign exchange markets. It was preceded by an extended phase of buoyant world economy, characterized by output expansion, burgeoning world trade, favorable financial and economic conditions, liquidity overhang, and low interest rates. Globally, financial confusion began in September 2008 with a series of failures of major financial institutions. The crisis has traversed from the financial to the real sector and it now looks like the recession, which is keeping world governments on tenterhooks, will be deeper - and the recovery longer - than earlier anticipated. Though adversely affected by the global meltdown, India's economy has shown considerable absorption capacity and resilience. This book focuses on the impact of the crisis on India, and on the the policy responses by the government of India, the Reserve Bank of India, the Securities and Exchange Board of India, and other agencies. The book will interest a cross-section of readers including teachers and students of economics, commerce, management, and politics.

Finance is the life blood of a government. Arrangements for finance are more complicated in a federal set up than in a unitary form of government. A federal system creates a multiple polity based on divided functions and powers among central, state and local governments. Fiscal federalism, as a branch of public finance, deals with financial arrangements and their working in a federal polity. Fiscal federalism is a subject of topical interest in India in view of some recent developments of historical importance. With the passage of the Constitution (Seventy-third Amendment) Act, 1992, a uniform structure of panchayats has emerged throughout the country. Similarly, the passage of the Constitution (Seventy-fourth Amendment) Act, 1992 was a landmark in the history of municipal administration in India. As a result of these amendments, panchayats and municipalities are now constitutional bodies forming the third tier of the federal polity of India. Furthermore, the Constitution (Eightieth Amendment) Act, 2000, significantly changed the manner of distribution of Central tax collections between the Central and State Governments. Prior to this Amendment, income tax and Union excise duties were the only taxes shared with the States. This Amendment altered the pattern of sharing of Central taxes between the Centre and the States by providing for the sharing of the net proceeds of all Union taxes and duties with the States. Still further, the Constitution (Eighty-eighth Amendment) Act, 2003 included taxes on services under entry 92C in the Union List (List I) in the Seventh Schedule of the Constitution. The Fiscal Responsibility and Budget Management Act, 2003, requires rules to be made under the Act to specify the annual targets for reduction of fiscal deficit and revenue deficit, contingent liabilities and total liabilities. Spread over 30 chapters, this book provides a detailed description and analysis of the evolution and the present structure of fiscal federalism in India. In particular, it contains highlights and summary of each Finance Commission Report from First to Thirteenth Finance Commission. A detailed note on the National Level Goods and Services Tax (GST) - scheduled to be introduced from April 1, 2011 - also forms part of the book. Besides, it contains time-series data (1950-51 to 2010-11) on India's public finances. It also includes a glossary of fiscal terms.

Fiscal policy is an important instrument of the general economic policy of a government. It is concerned with the use of a government's taxation and expenditure powers to influence economic activities in an economy at the aggregate level. It also deals with financial relations between different tiers of government in a federal polity. Through the medium of budget, fiscal policy determines the level of taxation, public expenditure, borrowings, and the issuing of additional currency by a government. In India, the external payments crisis of 1991 which led to the initiation of economic reforms was the result of a deteriorating fiscal situation during the latter half of 1980s. Fiscal imbalance was identified as the underlying cause of the twin problems of inflation and the difficult balance of payments position. This book provides an exhaustive and analytical account of fiscal developments in India since Independence (1947) with focus on post-1991 reforms. It examines many aspects of India s fiscal policy including government budgeting, the tax system, public expenditure, public debt, fiscal federalism, and the functional responsibilities and sources of revenue of local bodies.