India

Following an analysis of the country"s economic record during the past five decades, this paper outlines India"s failures and missed opportunities, especially in the area of economic policy. Specifically, post-Independence Indian planning is faulted in the report for being based on a Stalinist model of development; being pessimistic about export prospects; entailing a veritable maze of targets, controls, licenses, and other constraints; and embodying a massive and inefficient expansion of production in the public sector. Another factor in stagnation has been the continuance of the policy (inherited from the British Raj) of protecting and maintaining distorted and highly restrictive industrial labor markets. According to the report, India"s seemingly high-minded policies of controlled planning have had the unintended consequence of an interlocked system of economic and political interests. With this system in place, the implementation of fundamental policy changes required to end India"s continuing economic stagnation will be nearly impossible.