Reforming India’s External, Financial, and Fiscal Policies

Reforming India’s External, Financial, and Fiscal Policies

Product ID: 12589

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Author: Anne O Krueger
Sajjid Z Chinoy/
Editor(s): Anne O Krueger / Sajjid Z Chinoy
Publisher: Oxford University Press
Year: 2004
Language: English
Pages: 248
ISBN/UPC (if available): 0195668251

Description

This book examines some of the complex issues facing post-reforms India. Contributors-including eminent academics, CEOs, and policy-makers-analyse the complexities and loopholes in India’s reforms journey. They discuss why, after unprecedented GDP growth in the 1990s, the reforms process has lost steam, and suggest corrective measures needed to redress the situation.

Looking at India in the international context, the volume examines policies towards global trade and capital inflows, including issues in exchange-rate policy. The contributors concur that for India to transform into an outward-looking economy, it needs:

Reduction in the mean level of import duties
Relaxation in the sectoral cap on foreign direct investment
Market-determination of forex rate and depreciation in the real exchange rate

The second part reviews the reforms in banking and financial markets and establishes the need for upgraded technology. The final section compares India’s fiscal performance with that of other developing economies, highlighting worrying trends, such as the high incidence of non-performing loans and inefficient deposit mobilization, and provides concrete policy recommendations.

The key message of the volume for policy-makers in India: jump-start the reforms process so that India can attain an annual rate of GDP growth of 7-8 per cent. These essays address current concerns of the Indian economy in an informed and analytically sound manner. They will be invaluable to policy-makers, journalists, and India watchers as well as students and researchers of the Indian economy.

Contents

List of Tables

List of Figures

List of Abbreviations

Contributors

Preface

Introduction

THE EXTERNAL SECTOR

Integrating India with the World Economy: Progress, Problems, and Prospects
T N Srinivasan

Appendix: Export Performance and the Real Effective
T N Srinivasan and Jessica Wallack
Comment: Opening the Economy: Further Reforms
Shankar Acharya

INDIAN EXCHANGE RATE POLICY

Anne O Krueger and Sajjid Z Chinoy
Comment: Indian Exports and Exchange Rate Policy
Naushad Forbes

THE FINANCIAL SECTOR

Indian Banking: Market Liberalization and the Pressures for Institutional and Market Framework Reform
James A Hanson
Comment: Threats to the Indian Financial Sector
K V Kamath

Policy Issues in the Indian Securities Market
Ajay Shah and Susan Thomas
Comment: Some Issues on Securities Market Reforms
Ravi Narain
Comment: Policy Issues in the Indian Equity Market
Raghuram G Rajan
Comment: Political Economy of India’s Fiscal and Financial Reform
John Echeverri-Gent

FISCAL POLICY

Public Sector Deficits, Macroeconomic Stability, and Economic Performance
Sebastian Edwards

Appendix: Debt Substantiality and Fiscal Policy in a Poor Country Comment: Sustainable Debt-to-GDP Ratios
Alan J Auerbach
Comment: Parking the Deficit-The Uncertain Link Between Fiscal Deficits and Inflation-Cum-Devaluation
Arnold C Harberger

Tax Reform in India
N K Singh

Index