State Level Reforms, Growth, and Development in Indian States

Arvind Panagariya, Pinaki Chakraborty, and M. Govinda Rao

Studies in Indian Economic Policies

This is the first comprehensive, state-level analysis of the economic reforms in India.
The book contains a roadmap for the transformation of Indian states.
The authors' extensive use of data supports the key arguments of the book.

State Level Reforms, Growth, and Development in Indian States

Arvind Panagariya, Pinaki Chakraborty, and M. Govinda Rao

Studies in Indian Economic Policies

Description

Most discussions of India's recent economic growth focus on progress and policies at the national level. But with a population of 1.2 billion, several of the states in India are larger than many of the countries in the world. Therefore, a more complete understanding of India's ongoing experiment in economic reforms requires a study at the state level.

State Level Reforms, Growth, and Development in Indian States provides the first-ever comprehensive analysis of growth and reforms in the highly diverse states of the country. The authors argue that when the national government loosened its controls on industry and services, state governments began shaping the fortunes of their citizens through state-level policy reforms, resulting in faster growth in every state over the last decade than any other decade in the post-independence era. In fact, some of the poorest states, notably Bihar and Odisha, have been growing the fastest.

Professors Panagariya and Chakraborty and Dr. Rao refute the common assumptions that growth has not occurred or that poverty has not been reduced in all Indian states. The recent reforms have also led to improved access in every state to basic amenities such as permanent houses, electricity, water, and sanitation. These accomplishments notwithstanding, regional inequality on a per capita basis has grown as well. The authors analyze the economic transformation that has taken place in the largest eighteen states of India and suggest reforms in areas of agriculture, industry, services and urbanization that can further accelerate this transformation. They also provide a comprehensive analysis of education and health in the states.

State Level Reforms, Growth, and Development in Indian States

Arvind Panagariya, Pinaki Chakraborty, and M. Govinda Rao

Studies in Indian Economic Policies

Series Editors' Note
Preface

1. Introduction: The States of India

Part I: Growth, Development and Economic Transformation
2. Growth and Development in the Indian States: An Overview
3. Economic Transformation in Indian States

Part II: State Level Policies and Reforms for Rapid Transformation
4. States' Development Expenditures and Implications for Regional Development
5. Policies for Faster Growth in Agriculture
6. Industry and Services: What the States can Do
7. Urban Development

Part III: Social Sectors: Progress, Policies and Future Reforms
8. Health Outcomes in the Indian States
9. Health Infrastructure and Other Proximate Determinants of Health Outcomes
10. Health Policy Reform
11. Elementary Education: Outcomes and Policies
12. Higher Education: Progress and Prospects

Appendix: Converting the GSDP to the Common 2004-05 Prices
References
Index

State Level Reforms, Growth, and Development in Indian States

Arvind Panagariya, Pinaki Chakraborty, and M. Govinda Rao

Studies in Indian Economic Policies

Author Information

Arvind Panagariya is a Professor of Economics and Indian Political Economy at Columbia University, Non-resident Senior Fellow at the Brookings Institution, and a former Chief Economist of the Asian Development Bank. Panagariya has written prolifically on global trade policy issues and economic reforms in India. The author of a dozen books, he has also published technical papers in many leading journals and other publications. Professor Panagariya writes an influential monthly column in the Times of India and has been honored with the Padma Bhushan by India.

Pinaki Chakraborty is Economic Adviser to the Fourteenth Finance Commission of India. He is also Professor at National Institute of Public Finance and Policy, New Delhi. He served as Fellow, Senior Economist, and Economist at NIPFP, New Delhi and as Associate Professor at the Centre for Development Studies. His research areas are macroeconomics and public finance, tax policy and reforms, and federalism and intergovernmental fiscal issues. He has published his research papers in both national and international journals.

Dr. M. Govinda Rao is a well known scholar in public finance in India. Presently, he is a Member of the Fourteenth Finance Commission, Government of India. His past positions include Director of the National Institute of Public Finance and Policy in New Delhi and Director of the Institute for Social and Economic Change in Bangalore. Dr. Rao was also a Member of Economic Advisory Council to the Prime Minister of India. He has chaired and was a member of several committees. He has written extensive publications in referred journals in addition to his 14 books and monographs.

State Level Reforms, Growth, and Development in Indian States

Arvind Panagariya, Pinaki Chakraborty, and M. Govinda Rao

Studies in Indian Economic Policies

Reviews and Awards

"This book presents the first-ever state-level assessment of growth, development, and reform of India. The book is systematic, comprehensive, data-driven, and thoughtfully and carefully argued. Indeed, this book will stand as a landmark in our understanding of India's growth experience over the last 30 years. This book will be a revelation to those who study India's growth, and will almost certainly become a classic reference in this field." --Rajeev Dehejia, Associate Professor of Public Policy, New York University

"This original, interesting and thorough study is very detailed in its presentation and evaluation of a wide range of state level data on social, economic, and political variables. Alongside the main analytical findings, it engages a number of important questions and debates that have emerged around the question of policy reform in general and about the Indian reform experience in particular. It is certain to serve as a readily-accessible reference for interested scholars and policy analysts and as a guide for future state-level reforms for policy makers." --Pravin Krishna, Chung Ju Yung Distinguished Professor of International Economics and Business, John Hopkins University

"This work by Professor Arvind Panagariya and his colleagues is a seminal contribution towards understanding India's saga of economic transformation. This is the first systematic study that looks at India's post-reforms growth experience at the level of states. By analyzing major growth determinants such as development expenditure, agriculture productivity, infrastructure, accumulation of human capital, etc., the study offers many new insights on the 'catch up' by lagging regions. It is a must-read for all who care about promoting regional equity and India's co-operative federalism." --Vijay Kelkar, Chairman, India Development Foundation, New Delhi