Preface and Contents (ii) to (xix)

(xx) to (xxiii)
Acronyms
Union Budget 2020-21 UB-1 to UB-7

Definition of Terms Used in the Book T-1 to T-16

PART-I
1-48
ECONOMIc DEVELOPMENT: A THEORETICAL
BACKGROUND
Part -I: Summary Statisties 2

1. Economic Growth, Development and 3 13

Underdevelopment
The Concept of Economic Growth 3
The Concept of Economic Development
Growth and Development: A Contrast in Concepts
Underdevelopment: Mcaning and Indicators
Common Characteristies of Underdeveloped/Developing Countries

2. Economic and Human Development 14 28

Role of Natural Resources in Economic Development 14
Role of Economic Factors in Economic Development 15
Non-Economic Factors in Economic Development 16
Human Development 18
Why Human Development? 18
Essential Components of Human Development 19
The Human Development Index 20
Gender Inequality Index 23
Multidimensional Poverty Index 24
Links between Economic Growth and Human Development 26
Recasting Planning in Terms of Human Development 27

3. The Environment and Development 29 48

Environmental Protection and Sustainable Development 29
Growth and Environmental Degradation 30
Environment Policy in India 34
The Global Concerns 39

Select Readings for Issues Discussed in Part I 48

PART-II
STRUCTURE OF THE INDIAN EcONOMY 49 215
Part - II: Summary Statistics 50

of the Indian Economy 51 5 9

4. Colonialism and Underdevelopment
51
Meaning of Colonialism
of India 51
British Rule and the Exploitation

(vii)
 54
56
The British Rule and India's Underdevelopment
State Policies and Economic Underdevelopment 60 67
60
5. Nature of the Indian Economy
63
India An Underdeveloped Economy
India A Developing Economy 68 78

6. Natural Resources 68

Land Resources 70
Soil Erosion 71
Water Resources 72
Forest Resources 75
Mineral Resources
79-95
7. Infrastructure
79
Power or Electrieity
81
Coal
82
Oil and Gas
83
Atomic Energy
Energy Crisis
84
The Energy Strategy 84

New and Renewable Sources of Energy 86

Transport System in ndia 86
Railways
Road Transport 89
Water Transport 91
Air Transport 93
Communications 94
8. The Population Growth and Economic Development 96-110
The Three Stages of Demographic Transition
India's Population: Size and Growth Trends
96
India's Population: The Future 97

Causes of the 99
Rapid Growth of Population
Population and Economic Development 99
Remedies for Population Explosion 102
Population Policy 104
9. Some 106
Demographic Issues
The Sex Composition of Population and the Missing Women 111 126
Age Structure of Population and its
Demographic Dividend 111
Urbanisation and the Development Process
114
Migration of Rural Population to Urban Areas in India
118
Appendix I to Chapter 9: How Urban is India? Debate on
India's Urban Status 122
Appendix lI to Chapter 9: Smart City Mission
124-1
10. Human Resource
Development: Education and Health 125-2
Importance of Human Resource
Development
Education in India and
Development of Human Resources 127 140
Education Policy in India 127
Health Policy 129

National Hcalth Policy, 2017 129

National Health Protection Scheme
(Union Budget 2018-19) 134

138
11. Labour Force Growth and
Occupational Pattern 141 149
Labour Force Growth in India
141
Occupational Structure and Feonomic Development 44
Occupational Distibution of Labour Force in India 146
12. Employment and Unemployment in India 150 176
Employment Trends I50
Structure of Employment 152
Nature and Estimates of l'nemployment in India 1 56
Unemployment in Urban Areas 159
Agricultural U'ncmplovment 161
Govermment Poliey for Removing U'nemployment I63
Major Fmploy ment Programmes 165
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) 167
Rcthinking the Fmployment Strategy Focus on Manufacturing 170
Appendix 1 to Chapter 12 National Poliey for Skill Development and Entrepreneurship 2015 171
Appendis Il to Chapter 12: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 174
Appendix 1ll to Chapter 12: Decn Dayal Upadhyaya Grameen Kaushalya Yojana (DDU - GKY 75

13. Capital Formation in India 177 184

Domestic Saving 17

Domestic Capital Formation 181

14. National Income of India: Macroeconomic Overview 185 192

The National Income (NNP) Trends 185
Per Capita National Income 188
Services Led Growth I89
National Product by Industry of Origin 90

15. Poverty in India 193 206

The Concept of Poverty Line 193

Incidence of Poverty in India 193

Multidimensional Poverty 97
Safety Nets for Poor- Poverty Alleviation Programmes 200
Strategy of Poverty Alleviation 201

Conclusion 203
Appendix to Chapter 15: Universal Basie Income (UBI) 203

16. Income Inequalities in India 207 215

Income Inequalities in India 207
Causes of Income lnequalities in India 209

Government Policy and Measures 10

Select Readings for Issues Diseussed in Part I 213 215

PART-II1
BASIC ISSUES IN AGRICULTURE 216 330

Purt- ll: Summary Statistics 217

Indian Agriculture: Role, Nature and Cropping Patteru 218 224

17.
218
Role of Agriculture in lIndian Economy
220
Nature of India's Agriculture
Cropping Pattern in India 222
1 s s u e s in Indian Agricultural Policy and Rural Developmen

Policies for Agricultural and Rural Development: An Overview 225

230
Agriculture: Trends in Investment
WTO and Indian Agriculture: Challenges and Priorities in the Global Economy 232
236
Agricultural Growth Concerns
19. Agricultural Production and
238-245
Productivity Trends
Trends in Agricultural Production and Productivity 238
Low Levels of Productivity 240
Causes of Low Productivity 242
Measures to Increase Production and Productivity 243

20. Land Reforms 246-259

Systems of Land Tenure in Pre-lndependent India 246
Objectives of Land Reforms 247
Abolition of Intermediaries 248
Tenancy Reforms 249
Ceilings on Agricultural Holdings 251
Agricultural Holdings in India 253
Consolidation of Holdings 255
Cooperative Farming 256
Evaluation of Land Reforms in India 257
21. Agricultural Inputs and Green Revolution 260 278
Irrigation 260
Fertilizers 264
High Yielding Varieties of Seeds
265
Pesticides
267
Green Revolution
267
Impact of Green Revolution
268
22. Agricultural Finance and Marketing 279 298
Need for Agricultural Financee
Sources of Agricultural Finance and their Relative
279
Importance 280
Cooperative Credit Societies
282
Commercial Banks and Rural Credit
Regional Rural Banks 284

National Bank for Agriculture and Rural Development 286

(NABARD) 287
Financial Inclusion
Agricultural Marketing in India 289
Government Measures to Improve the System of Agricultural 292
Marketing
Cooperative Marketing 293
296
23. Agricultural Prices and Agricultural Price Policy
Trends in Agricultural Prices 299-304
Need for Agricultural Prices Policy 299

Agricultural Price Policy in India 300

Evaluation of Government's Agricultural Price Policy 300

302
24. Agricultural Subsidies and Food Security in India
Agricultural Subsidies 305 320

Subsidies on Agricultural Inputs 305

The Problem of Food Security 305

Public Distribution System in India 309

A Critical Review of the Pulblic Distribution System 310

 National Food Security Act, 2013
316
ICDS and Mid-Day Meal Scheme
321 330
25. Agricultural Labour 321
Definition of Agricultural Labour
322
Causes of Growth in the Number of Agricultural Labourers 323
Conditions and Problems of Agricultural Labourers
325
Measures Adopted by the Government 327
Measures for Improvement
329 330
Select Readings for Issues Discussed in Part III

PART-Iv
331 436
SERVICES IN INDIAN ECONOMY
THE INDUSTRIAL SECTOR AND

Part- IV: Summary Statistics

332

333 345
the Planning Period
26. Industrial Development During 333
under the Plans
Programmes of Industrial Development 335
Trends in Industrial Production 342
Changes in the Industrial Pattern During the Plans: A Brief Resume 343
Some Problems of Industrial Development in India
346 355
27. Some Major Industries of India 346
Iron and Steel 348
Jute Industry 349
Textile Industry 351
Sugar Industry 353
Cement Industry
356 365
Small-Scale and Cottage Industries
28. 356
Sector
Definition of Small-Scale Industries 357
and Small-Scale Industries in Indian Economy
The Role and Performance of Cottage 359
Government Policy
Small-Scale and Industries During the Plans - T h e
Cottage 363
Problems of Small-Scale and Cottage Industries
366-378
29. Industrial Policy 366
Industrial Policy Prior to 1991
368
Review of Pre-1991 Industrial Policy and Liberalisation Trends
371
New Industrial Policy, 1991 373
Appraisal of New Industrial Policy 374
National Manufacturing Policy 376
Make in India 377
Startup India
379 388
30. Public Sector in the Indian Economy
379
Private Sectors
Division of the Economy into Public and 379
Role of Public Sector in the Indian Economy
381
Performance of the Public Sector
384
Problems of Public Sector Enterprises
387
1991
Policy Towards Public Sector Since
31. Privatisation of Public Sector Enterprises:
389 397
The Disinvestment Programme in India
389
Meaning and Rationale of Privatisation
390
Methods of Privatisation
 393
Evolution of Privatisation Policy in India
394
Proceeds from Disinvestment and Methodologies Adopica
A Critique of Privatisation and Disinvestment 398- 406
398
32. Some Issues Related to Private Sector
Period 400
Private Corporate Sector in Economic Reform
401
The Burden of Corporate Debt
India's Antitrust Law: MRTP Act and Competition Act 403
Ease of Doing Business 404
Corporate Social Responsibility
407-414
33. Industrial Sickness in India 407
Definition of Industrial Sickness 408
Magnitude of Sickness 408
Causes of Industrial Sickness 409
Consequences of Industrial Sickness 410
Remedial Measures 412
Act. 2013 for Revival and Rehabilitation
of Sick Units
Provisions of Companies 413
Insolvency and Bankruptey C'ode 2016
415 423
34. Labour Relations and Social Security
415
Magnitude of Industrial Disputes
415
Causes of Industrial Disputes
Industrial Relations: Policy of the Government 416

Social Security in India 418

Social Security Legislations in India 418
A Critical Review of Social Security Measures in India 420

35. Services Sector in Indian Economy 424 436

Growth and Contribution of Services Sector in India 424
What Explains Rapid Services Growth? Reasons for Rapid Growth in Services 426
Share of Services in Employment 427
Information and Communications Technology
428
India's IT and ITES Industry
429
Foreign Trade in Services
431
Services Led Growth: How Sustainable?
432
SelectReadings for Issues Discussed in PartIv
435 436

PART-V
FOREIGN TRADE AND FOREIGN
CAPITAL 437 534
Part V:
-

Summary Statistics 438

36. India's Foreign Trade: Value, Composition and Direction

Value of Exports and Imports in the Planning Period 439-451

Composition of Foreign Trade 439

Direction of Trade 441
Growth and Structure of India's Foreign Trade Since 1991 446
37. India's Balance of Payments 448
Meaning of Balance of Payments 452 463
India's Balance of Payments: The Pre-1991 Period
452
Balance of Payments Situation Since 1991
453
The Management of Balance of Payments
455
Challenges and Outlook
459
 464 481
38. Trade Policy of the Government of India 464
Pre-Reform Period
Import Policy: The 467
Pre-Reform Period
Export Policy: The 470
New Trade Policy: The Reform Period 474
Foreign Trade Policy (2015-2020) 476 481
Economie Zones
Appendix to Chapter 38: Special 476
Concept and History of SEZs 477
Special Economie Zones in India 477
Benefits of SEZs 478
Arguments Against SEZs 480
EGOM Decision on SEZs 480
SEZs: A Dream Gone Sour
482 495
39. Foreign Capital and Aid 482
Components of Foreign Capital1 482
Need for Foreign Capital 483
Indian Government's Policy Towards Foreign Capital
487
Forcign Investment nflows 489
Foreign Investment Inflows since 1991: A Critical Appraisal
490
Foreign Aid to India
492
External Commercial Borrowings
493
Non-Resident Deposits 494
India's External Debt

40. India's Exchange Rate Policy, Foreign Exchange Reserves 496 503
and Capital Account Convertibility
496
Choice of Exchange Rate Regime
497
Exchange Rate Management in India 498
The Management of Foreign Exchange Reserves
500
The Issue of Capital Account Convertibility

41. Multinational Corporations, FERA and FEMAA

504 510
504
Reasons for the Growth of MNCs
504
Foreign Collaboration and MNCs
A Critical Appraisal of MNC Operations in Indian Economy 505
506
Control Over Multinational Corporations
507
Foreign Exchange Regulation Act (FERA), 1973
508
Foreign Exchange Management Act (FEMA), 1999
FEMA: A Major Departure from FERA 509

42. Globalisation and Its Impact on the Indian Economy 511 516

Meaning of Globalisation 511

Globalisation in India 511

Steps towards Globalisation 512
Effects of Globalisation 514

43. WT0 and India 517 533

GATT and Multilateral Trade Negotiations 517
Functions and Organisation of WTo 518
WTO Agreements 518
Benefits Proclaimed for India 520
A Critical Review of the Working of WTO $20
Singapore Issues and Doha Declaration 524
Hong Kong Ministerial Conference 526
 529
530
Nairobi Ministerial Conference
Eleventh WTO Ministerial Conference 532 533
V
Select Readings for Issues Discussed in Part

PART-VI
FINANCE
535 618
BANKING
AND
MONEY,
536
Part- VI: Summary Statisties
537 547
44. Price Trends and Inflation
537
Wholesale Price Index and Consumer Price lndex
538
Price Movements during the Planning Period
540
Factors on the Demand Side Affecting Prices
Factors on the Supply Side Affecting Prices
540
Consequences of the Inflationary Price Rise
542
Anti-Inflationary Policy of the Government 543
Inflation Targeting: Urjit Patel Committee Report 545

45. Indian Money Market 548 557

The Indian Money Market 548
Unorganised Sector of the Indian Money Market 548
Organised Sector of the Indian Money Market 550
Characteristics of the Indian Money Market
554
Reform Measures to Strengthen the Indian
Money Market 555
46. Commercial Banking in India
558-574
Banking Developments: 1949-69
Nationalisation of Banks 558
Banking Structure in India $58
Expansion of Branches during the Post-Nationalisation Phase 559
Deposit Mobilisation 561
Bank Lending S62
Evaluation of Banking Since Nationalisation 563
Banking Sector Reforms 564
IndianBanking: Concerns and Challenges for Future 566
Appendix to Chapter 46: Payment Banks and Small 570
Finance Banks
47. The Reserve Bank of India 573
Main Functions of the Reserve Bank
of India 575 587
Monetary Policy of the Reserve Bank of India
Control of Currency by the Reserve Bank 575
of India
The Reserve Money (RM)
Control of Credit by the Reserve Bank of 79
India
Short-Term Liquidity Management 579
Banking Laws (Amendments) Act, 2012 580
582
48. Capital Market in India
585
Capital Market
Structure of the Capital Market 588 604
Role of Capital Market in India's Industrial
Growth 588
Growth of Capital Market in India
588
Factors Contributing to the Growth of
Capital Market in India 590
Problems of Indian Capital Market: The
Pre-Reform 590
Strengthening the Capital Market: The Post-Reform Phase
Phase 593
s9
 598
SEBI and Capital Market Development
600
Challenges Requiring Attention 601
48: Measures to Develop Corporate Bond Market
Appendix to Chapter
605 617
49. Institutional Financing 605
Evolution of Institutional Financing in India
606
Classification of Financial Institutions in India
607
All India Development Financial Institutions
611
Investment Institutions 612
Specialised Financial Institutions 613
State Level Institutions 614
of the Industrial Financing Institutions
A Critical Appraisal
616 617
Select Readings for Issues Discussed in Part VI

PART-VII
619 682
PUBLIC FINANCEE
620
Part- VIl : Summary Statistics
621 634
50. The Indian Tax Structure 621
Tax Burden in India 621
Tax Revenue of the Central Government 623
Tax Revenue of the State Governments 623
Taxes on Income and Wealth
626
Indirect Taxation: GST and Customs Duties
630
Evaluation of Indian Tax Structure
632
Appendix to Chapter 50: Erstwhile Indirect Taxes
635 642
51. Public Expenditure in India: Trends and Issues
635
Expansion in Government Activity after Independence 636
Growth of the Public Expenditure
636
Composition of the Government Expenditure
639
Causes of the Rise in Public Expenditure
640
Public Expenditure Management
643 650
52. Public Debt in India
643
Debt Obligations of the Central Government
645
Debt Obligations of the State Governments
646
The Role of Debt Finance
647
Public Debt- Problems and Issues
649
Public Debt Management

53. India's Fiscal Policy

651 660
651
Objectives of Fiscal Policy in India
The Fiscal Imbalance and Deficit Finance 653
The Fiscal Imbalance and the New Fiscal Approach 654
Fiscal Responsibility in India 656

54. Federal Finance in India - Centre-State Financial Relations 661 681

Federalism and Federal Finance 661
Transfer of Resources through the Finance Commissions: 1951-2000 662
Transfer of Resources through the Finance Commissions: 2000-2010 665
Thirteenth Finance Commission Award: Period 2010-15 669
Fourteenth Finance Commission Award: Period 2015-2020 672
 Problems of Federal Finance in lndia
616
Suggestions for Improvement 67%
Appendix to Chapter 54: Fifteenth Finance Commisston 78
Seleet Readings for Issues Diseussed in Part VIn
680 681

PART-VII

ECONOMIC
PLANNING AND POLICY
683 784
Part- PHI: Summary Statisties 68A

SS. Economic Planning Rationale, Features and Objectives 685-694

The Rationale for
Planning
Important Features of Indian Plans 685
Objectives of Economic Planning h8h
Evaluation of the Objectives of Economic Planning8
69
56. The Strategy of Planning 695-702
Strategy of India's Development Plans: The Earlier Phase (Mahalanobis Strategy)
695
Appraisal of the Mahalanobis
Strategy of Development 698
Failure of the Mahalanobis
Strategy of Development 699
Departures from the Mahalanobis Strategy of
Development
The New 699
Development Strategy
00
57. Resource Allocation- Investment Pattern in Indian Plans
703 707
Resource Allocation: 1951-85 Period
Resource Allocation: 1985-2012 Period 03
Sectoral Allocation of Resources in Plans An
Overall View
-

70
58. Financing of Five Year Plans
Financing of the First Seven Plans 708-716
Financing of the Eighth and Ninth Plans
Financing Pattern of the Tenth Plan
Financing Pattern of the Eleventh Plan
Ways to Increase Revenue and Control
Expenditure
59. Regional Planning in India
Regional Planning Conceptualised 717-727
Magnitude of Regional Imbalances in India
Regional Planning Policy in India 718
Lack of Genuine Regional Planning in India

60. Black Economy in India 720

Definition of Black Economy 728-743

Methods of Estimating Black Money
728
Estimates of the Size of Black
Economy 729
Causes of Black Money
730
Consequences of Black Economy
733
Government Measures to Curb Black Money
Appendix I to Chapter 60: Demonetisation
730
Appendix II to Chapter 60: Corruption Perception Index 73
61. Assessment of Indian Planning
Targets and Achievements of Plans
744 754
Accomplishments of Economic Planning
74
 An Appraisal of the Planning Process 749
Establishment of NITI Aayog 752

62. Economic Reforms and Liberalisation 755 767

755
The Origin of Economic Crisis in the Early 1990s
Economic Reforms in India 756
756
Macroeconomic Stabilisation
760
Structural Reforms
764
An Appraisal of Economie Reforms
768 775
63. Twelfth Five Year Plan
768
Vision and Strategy for the Twelfth Plan
769
Macroeconomie Framework
770
The Financing Pattern
772
Sectoral Issues
776 781
64. Covid and Indian Economy
176
Economic Growth
Impact of Covid on
777
Government Stimulus Package 780
Boosting Demand is Crucial for Economic Recovery 782 7 8 4
Part VII
Select Readings for Issues Discussed in 785 796
Index

TABLES

8
in US Dollars (2016) (Selected Regions/Countries)
1.1 GNP Per Capitaand PPP Estimates of GNP Per Capita 10
1.2 Income Inequality in Selected Countries
in Some Selected Developing Countries
1.3 Employment and Income Agriculture
in 22
HDI According to HDR 2016
2.1 Goalposts for Calculating the 55
4.1 Adjusted Per Capita Income 97
8.1 Growth of India's Population 98
1950-51 to 2016
8.2 Crude Birth and Death Rates 111
Female-Male Ratio (FMR) in India 109
9.1
States of India
9.2 Sex Ratio (FMR) in Major 113
9.3 Child Sex Ratio in India l15
Age Groups, Major States (1961, 2001 and 2011)
9.4 Percentage Distributionof Population by Broad 119
1961-2011
9.5 Rural-Urban Distribution of India's Population,
their Population Growth Rate,
Number of Cities and UAs with
a Population of 1,00,000 and above and 121
9.6
India, 1951-2011 141

11.1 Growth Labour Force (1971-2011)

of 142
and Marginal Workers
11.2 Growth Rates of Main Workers 143
Workers and Urban Workers
11.3 Growth Rates of Rural 144
and Female Workers
11.4 Growth Rates of Male Workers 144

11.5 Populationand Labour Force Projections 147

in India (Percentages)
11.6 Occupational Distribution of Working Population 151
12.1 Employment and Unemployment (by UPSS) 1972-73 to 2011-12
152
Workers Across Broad Industrial Categories:
12.2 Estimated Numbers of UPSS 154
Sectors
12.3 Employment in Public and Private 155
1972-73 to 2011-12
12.4 Employment Status by Category of Employment, 157
12.5 Unemployment Rates Sex, Residence and Status (Per cent)
by 158
loumant Rates (Per 1000) for 1993-94 and 2004-05