Reforms and Economic Transformation in India

309 Pages·2012·1.45 MB·English

by  Jagdish Bhagwati, Arvind Panagariya

R eforms and Economic
Transformation in India
S TUDIES IN INDIAN ECONOMIC POLICIES
I ndia’s Reforms: How they Produced Inclusive Growth
Reforms and Economic Transformation in India
R eforms and Economic
Transformation in India
E dited by
Jagdish B hagwati
A rvind P anagariya

1
3

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Library of Congress Cataloging-in-Publication Data
Reforms and economic transformation in India / edited by Jagdish Bhagwati,
Arvind Panagariya.
p. cm.—(Studies in Indian economic policies)
Includes bibliographical references and index.
ISBN 978–0–19–991520–0 (cloth : alk. paper) 1. India—Economic policy—1991–
2. Industrial policy—India—History—21st century. 3. Commercial policy—
India—History—21st c entury. 4. India—Economic conditions—1991– I. Bhagwati,
Jagdish N., 1934– II. Panagariya, Arvind.
HC435.3.R44 2013
338.954—dc23
2012010951
ISBN: 978–0–19–991520–0
1 3 5 7 9 8 6 4 2
P rinted in the United States of America
on acid-free paper
In Memory of
Abid Hussain
a pioneer among early reformers in India
This page intentionally left blank
C ON T EN T S
S eries Editors’ Note i x
P reface x i
L ist of Contributors x iii
1 . I ntroduction 1
J agdish Bhagwati and Arvind Panagariya
P ART ONE: R eforms and the Transformation within
Manufacturing and Services
2 . L abor Regulations and Firm Size Distribution in Indian
Manufacturing 1 5
R ana Hasan and Karl Robert L. Jandoc
3 . C omplementarity between Formal and Informal
Manufacturing in India: T e Role of Policies and Institutions 4 9
A sha Sundaram, Reshad N. Ahsan, and Devashish Mitra
4 . S ervices Growth in India: A Look Inside the Black Box 8 6
R ajeev Dehejia and Arvind Panagariya
5 . O rganized Retailing in India: Issues and Outlook 1 19
R ajeev Kohli and Jagdish Bhagwati
P ART TWO: R eforms and the Transformation within
and across Enterprises
6 . S elling the Family Silver to Pay the Grocer’s Bill? T e Case
of Privatization in India 1 41
N andini Gupta
7 . V ariety In, Variety Out: Imported Input and Product
Scope Expansion in India 1 68
P inelopi Goldberg, Amit Khandelwal, and Nina Pavcnik
8 . R eforms and the Competitive Environment 2 00
L aura Alfaro and Anusha Chari
( vii )
( viii ) Contents
P ART THREE: R eforms and Social Transformation
9. T e Post-reform Narrowing of Inequality across Castes:
Evidence from the States 2 29
V iktoria Hnatkovska and Amartya Lahiri
1 0. E ntrepreneurship in Services and the Socially
Disadvantaged in India 2 53
R ajeev Dehejia and Arvind Panagariya
I ndex 2 79
S ER IE S EDI TOR S ’ NOT E
R eforms and Economic Transformation in India is the second volume in the
series Studies in Indian Economic Policies. T e series bring out scholarly stud-
ies of past and future economic policies and their impact on India. It is our
intention to include volumes authored by single or paired authors as well as
collections of essays by diff erent authors devoted to closely related themes
in the series. T e series is not wedded to any specifi c method of analysis or
viewpoint but does seek a policy focus and high standards of economic and
political analysis.
T e origins of the series lie in the Columbia Program on Indian Economic
Policies, generously funded by the John Templeton Foundation. Formally
launched on October 1, 2009, the program has undertaken a series of research
projects with the participation of leading economists interested in the study
of India. T e fruits of these projects are the bases of the fi rst two volumes in
the series.
W e expect to bring out several additional volumes based on the research
undertaken by the program and to also include other studies relevant to
assessing Indian economic policies. We thank the John Templeton Foundation
for supporting the Columbia Program, and Oxford University Press, especially
Terry Vaughn and Catherine Rae, for making this series possible.
J agdish Bhagwati and Arvind Panagariya
C olumbia University
J uly 2012

( ix )