World Bank2013-07-262013-07-262003-07-14https://hdl.handle.net/10986/14617The report analyzes India's continued good progress in increasing incomes, and improving living standards over the past decade, which after the setback associated with the 1991 balance of payments crisis, economic growth picked up, income poverty continued to decline, and many social indicators, in particular literacy, continued to improve. Likewise, there has been an opening to private activity, trade policy and the exchange rate regime have been further liberalized, and capital markets have been reformed, leading to an improved investment climate. Nonetheless, development progress has been steady, but uneven, while in addition, the recent growth deceleration was accompanied by a slowdown in investment, especially in the private sector. The fiscal position of the general government has now also deteriorated, with a rising budget deficit, the result of a significant increase in government consumption, and continued low revenue mobilization. But at the same time, prudent monetary policy has helped contain inflation, and strengthen the balance of payments. Based on this analysis, fiscal reforms are needed in taxation, financial, social, as well as for fiscal management. The report also reviews the delivery of public services, showing the need to access effective social safety nets, i.e., social services that require increasing the level, but more importantly the quality of public expenditures in these areas. This in turn requires improving the governance and productivity of India's civil service, and the pressing problem of affordability. An effective program of civil service reform should include measures to achieve the following three objectives: improve access to information; strengthen accountability; and, reduce political interference. Of special concern, are the weaknesses in the service delivery of social sectors: education, health and social safety nets, and, it has been argued that decentralization, and local empowerment will ultimately improve the quality of service delivery at the village level. To this end, the report suggests improving the investment climate, with a special look at infrastructure development, while promoting rapid agricultural, and rural growth given its importance in the socioeconomic, and political fabric of India, through productivity-enhancing investments. Continued progress on poverty reduction will require a major push to reinvigorate the reform agenda.en-USCC BY 3.0 IGOADVERSE CONSEQUENCESAGRICULTUREBALANCE OF PAYMENTSBORROWINGBUDGET DEFICITBUDGET DEFICITSBUDGET MANAGEMENTCAPITAL FORMATIONCAPITAL MARKETSCDSCENTRAL GOVERNMENTCIVIL SERVICECORRUPTIONCURRENT PRICESDEBTDEBT SERVICEDECENTRALIZATIONECONOMIC COOPERATIONECONOMIC GROWTHECONOMIC PERFORMANCEELASTICITYELECTRICITYEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORTSFINANCIAL RESTRUCTURINGFINANCIAL SECTORFINANCIAL SYSTEMFISCALFISCAL DEFICITFISCAL DEFICITSFISCAL MANAGEMENTFISCAL POLICYFISCAL REFORMFISCAL REFORMSFISCAL SITUATIONFISCAL STANCEFISCAL SUSTAINABILITYFISCAL YEARFOREIGN DIRECT INVESTMENTFREE TRADEGDPGOVERNMENT CONSUMPTIONGOVERNMENT DEBTGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTGROWTH RATEHEALTH SERVICESHEALTH SPENDINGHOUSINGHUMAN DEVELOPMENTIMPORTSINFLATIONINSURANCEINTEREST RATESINVESTMENT CLIMATELIVING STANDARDSMARKET DISTORTIONSMONETARY POLICYNATIONAL INCOMEOILPENSIONSPER CAPITA INCOMEPER CAPITA INCOMESPRIVATE SECTORPUBLIC AFFAIRSPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC RESOURCESPUBLIC SAVINGSPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC WORKSRESERVE BANK OF INDIAREVENUE MOBILIZATIONROADSSAFETY NETSSAVINGSSOCIAL SAFETYSOCIAL SAFETY NETSSTATE GOVERNMENTSTATE INSTITUTIONSSUBSIDIARYTAXTAX ADMINISTRATIONTAX RATESTAX REFORMTAX REVENUESTOTAL FACTOR PRODUCTIVITYTRADE POLICIESTRADE REFORMSUNEMPLOYMENTUNEMPLOYMENT RATESURBAN DEVELOPMENTUTILITIESVALUE ADDEDWAGESWHOLESALE PRICE INDEXWORLD TRADE ORGANIZATIONWTO REFORM POLICYREFORM IMPLEMENTATIONPOVERTY REDUCTIONGROWTH PATTERNSBALANCE OF PAYMENTS DEFICITSSOCIAL INDICATORSPRIVATE SECTOR PARTICIPATIONMARKET LIBERALIZATIONTRADE POLICY REFORMCAPITAL MARKETSEXCHANGE MARKET DEVELOPMENTSINVESTMENT ENVIRONMENTFISCAL ADMINISTRATIONFISCAL CONSTRAINTSBUDGET DEFICITSMONETARY POLICYPRUDENTIAL REGULATIONSFISCAL REFORMSTAX REFORMSFINANCIAL SECTOR REFORMSOCIAL REFORMCIVIL SERVICE REFORMSFISCAL MANAGEMENTPUBLIC SERVICE DELIVERYSOCIAL SAFETY NETSEDUCATION DELIVERYHEALTH CARE DELIVERYDECENTRALIZATIONINFRASTRUCTURE DEVELOPMENTAGRICULTURAL DEVELOPMENTWorld Bank10.1596/14617