Reforms and Economic Transformation in India

309 Pages·2012·1.45 MB·English

by  Jagdish Bhagwati

Reforms and Economic
Transformation in India
STUDIES IN INDIAN ECONOMIC POLICIES
India’s Reforms: How they Produced Inclusive Growth
Reforms and Economic Transformation in India
Reforms and Economic
Transformation in India
Edited by
Jagdish Bhagwati
Arvind Panagariya

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 century. 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
Printed in the United States of America
on acid-free paper
In Memory of
Abid Hussain
a pioneer among early reformers in India
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CONTENTS
Series Editors’ Note ix
Preface xi
List of Contributors xiii
1. Introduction 1
Jagdish Bhagwati and Arvind Panagariya
PART ONE: Reforms and the Transformation within
Manufacturing and Services
2. Labor Regulations and Firm Size Distribution in Indian
Manufacturing 15
Rana Hasan and Karl Robert L. Jandoc
3. Complementarity between Formal and Informal
Manufacturing in India: Th e Role of Policies and Institutions 49
Asha Sundaram, Reshad N. Ahsan, and Devashish Mitra
4. Services Growth in India: A Look Inside the Black Box 86
Rajeev Dehejia and Arvind Panagariya
5. Organized Retailing in India: Issues and Outlook 119
Rajeev Kohli and Jagdish Bhagwati
PART TWO: Reforms and the Transformation within
and across Enterprises
6. Selling the Family Silver to Pay the Grocer’s Bill? Th e Case
of Privatization in India 141
Nandini Gupta
7. Variety In, Variety Out: Imported Input and Product
Scope Expansion in India 168
Pinelopi Goldberg, Amit Khandelwal, and Nina Pavcnik
8. Reforms and the Competitive Environment 200
Laura Alfaro and Anusha Chari
( vii )
( viii ) Contents
PART THREE: Reforms and Social Transformation
9. Th e Post-reform Narrowing of Inequality across Castes:
Evidence from the States 229
Viktoria Hnatkovska and Amartya Lahiri
10. Entrepreneurship in Services and the Socially
Disadvantaged in India 253
Rajeev Dehejia and Arvind Panagariya
Index 279
SERIES EDITORS’ NOTE
Reforms and Economic Transformation in India is the second volume in the
series Studies in Indian Economic Policies . Th 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. Th 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.
Th 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. Th e fruits of these projects are the bases of the fi rst two volumes in
the series.
We 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.
Jagdish Bhagwati and Arvind Panagariya
Columbia University
July 2012

( ix )