Page 51 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 4: Economic Reforms in India Since 1991

Situation seems to have worsened later. Figure of per capita state domestic product at current Notes
prices show that the ratio of per capita state domestic product of Haryana (highest per capita
state domestic product of ` 58531) and that of Bihar (` 10570) was 5.5 even in 2007-08. Though
rate of growth of some underdeveloped states has improved in the last few years, lot more is
needed to be done to reduce regional inequalities.
11. Social Infrastructure and Human Development
Data on selected indicators of Human Development viz., life expectancy, literacy rate, infant
mortality rate (IMR). If the purpose of all development is to improve the quality of life, then
human development indicators are the end-products of the development process.
Wide disparities are observed among different states. Kerala and to some extent Tamil Nadu
have shown that it is possible to achieve higher levels of human development even with low
levels of economic development. But, by and large, better levels of per capita NSDP are associated
with higher levels of human development. To achieve higher levels of human development, it
is necessary that investment in educational and health infrastructure be stepped up. Among
the back-ward states. Uttar Pradesh, Bihar. Rajasthan and Madhya Pradesh have very poor
record in terms of literacy, especially female literacy. They have also failed in investment in
health infrastructure and consequently have lower life expectancy, higher infant mortality and
higher birth rate. The private sector which is the torch-bearer of economic reforms my be setting
up nursing homes or elite educational institutions with higher levels of charges or fees to meet
the demand of the upper middle class and affluent sections, but it does not offer anything for
the welfare if the poor. Either the private sector should assume a higher social purpose or the
state should invest more in education and health infrastructure.
Self-Assessment
1. Choose the correct option:
(i) Economic reforms in India were introduced in
(a) 1991 (b) 1978
(c) 1985 (d) None of these
(ii) Water seed fertilizer technology popularly known as
(a) Growth development (b) Green revolution
(c) Peasant reforms (d) None of these
(iii) In economy CDS stands for
(a) Combined defense services (b) Central development services
(c) Current daily status (d) none of these.
4.2 Summary

• It has to be acknowledged that the reform process will not be able to achieve its socio-economic
objective, because the private sector is merely concerned with profit motive. Whereas the
liberalisation process has reduced the role of the public sector investment, it has failed to fill the
vacuum created by the withdrawal of public sector investment in infrastructure, more especially
in the backward states. Obviously, this calls of a reform of the reform process. President W. J.
Clinton while speaking in Hyderabad on March 24, 2000 on the need to harness new technologies
like info-tech for eradicating poverty emphasised: “Millions of Indians are connected to the
internet, but millions more are not yet connected to fresh water. India accounts for 30 per cent
of the world’s software engineers but also 25 per cent of the world’s malnourished. So our
challenge is to turn the newest discoveries into best weapons humanity has ever had to fight
poverty.” Mr. Clinton underlined the fact that while it was good that a lot of 25-year old
multi-million-aires were being created and the latest Indian start-ups were shooting up the
Nasdaq, “this whole enterprise cannot just be about higher profits, there must also be a higher
purpose.”

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