Rapid growth since 1980 has transformed India from the world's 50th ranked economy in nominal US dollars to the 12th largest in 2003. When income is measured with regard to purchasing power parity, the Indian economy occupies 4th place, after the United States, Japan, and China. Along with growing incomes, India's increasingly outward orientation and the growing optimism about its economy has led to a sweeping rise in international investors' interest. At the same time evidence suggests that income inequality is rising and the gap in average per capita income between the rich and poor states is growing. Election results at the national and state level suggest that unless the issue of growing income inequality and inequality in standard of living is tackled upfront, there is a risk that the economic reform momentum might slow down. If this happens, growth will suffer.
This book provides an in-depth treatment of growth and employment issues in India. It reviews India's long-term growth experience, emerging constraints and challenges, and the way forward for sustaining rapid growth along with more and better employment. Specifically, the book identifies ways in which investment can be improved to raise productivity and reduce the cost of doing business, thereby promoting domestic and foreign private investment. It looks at the growth and productivity challenges of agriculture and suggests policies that will help raise farm productivity and incomes. It explains the reason for the low overall employment elasticity of past growth and why there has been limited expansion of good jobs, and concludes by suggesting critical reform options for increasing employment.
Dr. Sadiq Ahmed began his career as a Lecturer in Economics at the Dhaka University in 1974 and later worked at the Bangladesh Institute of Development Studies as a Research Fellow. Dr. Ahmed did his MSc from London School of Economics and PhD from Boston University. He joined the Young Professional program of the World Bank in 1981 and held several key positions: Country Economist, Egypt, the Middle East and North Africa Region; Principal Economist, Indonesia, PNG and Pacific Islands, East Asia and Pacific Region; Lead Economist, Pakistan, Sri Lanka and Afghanistan; Country Director, Pakistan and Afghanistan Program; Chief Economist, South Asia Region; Sector Director, Poverty Reduction and Economic Management, Finance and Private Sector, South Asia Region; and Senior Manager, Regional Programs, South Asia Region. He took early retirement from the World Bank in July 2009 to return back to Bangladesh to contribute to the development needs of the country.
Preface I.SETTING THE SCENE: India's Long-Term Growth Experience: Lessons and Prospects - Sadiq Ahmed II.MACROECONOMIC FRAMEWORK FOR SUSTAINED GROWTH: Fiscal Policy for Growth in India - Brian Pinto, Farah Zahir and Gaobo Pang India's State Finances - Marina Wes III.SECTORAL POLICIES FOR GROWTH : From Inhibiting to Enabling: India's Changing Approach to The Role of Private Sector - Deepak K Miishra India's Financial Sector: Recent Reforms and the Challenges Ahead - Priya Basu Meeting India's Infrastructure Demands-the Role of Reforms and Investment - Clive Harris Revitalizing the Agricultural Sector in India: Opportunities and Challenges - Dina Umali-Deininger IV.LABOR MARKET POLICES FOR JOB CREATION: Labor Markets in India: Developments and Challenges - Ahmed Ahsan and Ashish Narain Index