Planning and economic policy in India

The recent shift in India's economic policies constitutes a radical departure from the earlier path which was characterised by large-scale government intervention in all crucial sectors of the economy. The adoption in 1991 of new policies-which are primarily market oriented and envisage dismantling of government control-has given rise to considerable debate within the country about both the rationale and the content of the 'reforms'.

It is against this background that this volume provides a comprehensive and critical appraisal of the planning process and economic policies followed by India till 1991. Going beyond mere introspection about the past, the distinguished contributors make explicit policy recommendations in the context of the economic reforms initiated in 1991.

Aside from the introductory chapter, the essays in this volume fall into two groups. The first group provides explanations and critiques of India's planning strategies. Besides highlighting the strengths and weaknesses of and constraints on the planning process as it evolved in India, these papers also outline future policies in terms of the scope for public intervention in an environment where trade, finance and industry are being liberalised and quantitative restrictions gradually withdrawn.

The second group of papers explores major aspects of India's economic performance since 1950. The empirical findings of these papers have important implications for both overall and sectoral policies in relation to the trickle down mechanism, agricultural growth and employment, fiscal deficit and inflation, industrial production, and the efficacy of the on-going programme of structural adjustment at the macroeconomic level.

Overall, this volume constitutes a significant contribution to the current debate on economic reforms and draws attention to various unresolved issues and dilemmas. It will be of interest to scholars and students of economics (specially of planning), macroeconomic theory and development studies.