India in the Post Liberalisation Era: Challenges and Prospects

The last decade witnessed the heady days of 8 to 8.5% per annum GDP growth and a booming Indian economy whose growth pace and glitter grabbed the attention of the entire world. Sadly, even after a decade of robust growth, a rational analysis of a large body of economic data and figures suggest an increasing gap between the goal of macroeconomic development and social development. Growth without development has deepened inequality and this is likely to have dangerous socio-political consequences. Political will seems to be lacking and the economic agenda for long-term social development is missing. Structural reforms of labour, land and several other key policy issues have been on the back-burner because of the governments soft pedaling on reforms. The declining growth rate over the last few years coupled with the growing political logjam have slowly but surely created a sense of malaise in the country; there is a palpable sense that the juggernaut of the Indian economy is slowing down.