CIAO DATE: 10/05

Financial Sector Reform in India: Is There a Grand Design?

Abstract

The Planning Commission of India, in its Approach Paper for the Tenth Five-Year Plan (2002- 07), set its sights on two lofty targets: doubling per capita income over the next 10 years— compared to similar goals over 20 years as was previously the norm—and reducing the incidence of poverty by five percentage points.

The Planning Commission felt that to achieve these goals, the country would need to achieve an average annual growth rate of 8.7 percent. However, given the slowdown of growth in 2001-02 (to 5.4 percent) and the lower growth that it anticipated in 2002-03 (between 5 and 5.5 percent), the Planning Commission felt that it would better to shoot for a more realistic average annual growth rate of 8 percent.

Full Text Version (PDF Format, 60 pages, 608.5 KB)