India — Reform on Hold

Abstract

In 1991, India embarked on economic reforms that have the potential to transform its future economic development. This paper is an evaluation of these reforms. It analyzes the progress made in the last seven years, considers the likelihood of its continuance, and suggests an agenda for the future. The authors conclude that while there has been significant movement in some areas, the reforms, as a whole, have been slow and unbalanced and are as yet highly incomplete. They are fairly pessimistic about the political feasibility of the reforms and sceptical about greater devolution of powers and responsibilities to the States as the way forward.