Benefiting from Economic Reforms
Program Director: Prof. Sumit Sarkar
April 03-05, 2006
IIMK Campus, Kunnamangalam, Calicut

Objectives: The focus of the programme is on the economic reforms introduced after the financial crisis of 1991. We will examine the different areas of the economy and outline the successes and effects of reform measures. Since India.s economic reforms were launched in 1991, the Indian economy has sustained an annual average growth rate of over 6 per cent. The importance of services in India.s economic growth is significant. During the post-reforms period the growth-contributing role of services was nearly 60 per cent. However, agricultural and manufacturing growth had been very limited.

We need to look into the impact of the economic reforms initiated in India in 1991 on the poor and on poverty reduction. While during the pre-reform period all fifteen states recorded significant reductions in rural and urban poverty levels, during the post-reform period the scenario has changed. Although a majority of the Indian states continued to register negative trends in rural and urban poverty levels, these were not statistically significant in most cases. While a few states such as Gujarat and Karnataka reported a steeper decline in rural poverty levels in the latter period, others, notably Punjab and Haryana, which ushered in the green revolution in India, reported a reversal with rural poverty trends turning from negative to positive. Policies to accelerate agricultural growth, improve access to subsidized food through the public distribution system, and infrastructure development along with measures to control inflation and reduce inequalities promises to be most effective in reducing poverty in India.

The nation needs to launch on a second generation of reforms. We need to utilise economic theory and knowledge to suggest ways and identify what sectors should be seen as priorities for prospective development.

Contents: