Today, the private sector has become an active participant in thetelecommunications sector. Insurance has been opened to private investors, bothdomestic and foreign. The economy has grown at more than 6 per cent, coupledwith full macroeconomic stability. The rate of inflation is once again coming downafter spiralling alarmingly.Rising incomes have helped reduce poverty. According to official figures, theproportion of poor in total population has declined from 40 per cent in 1993-1994to 26 per cent in 2000.Most importantly, the attitude toward reforms has changed. Virtually everypolitical party today recognizes the need for continued reforms.
Though slow pace of reforms is credited with India’s firm fundamentals and
weathering the shock of global economic depression, yet all is not well with
India’s reforms and the fiscal deficit remains in doldrums. The combined deficit at
the Centre and States exceeds 10 per cent of GDP. This deficit is unsustainable; itis also crowding out private investment.Infrastructure like roads, railways and ports all need expansion. Improvement inquality of service and delivery systems is a must. The government has recently
started building roads, but the pace remains slow. India’s power sector is also in a