Indian Institute of Management

Lucknow

POSTGRADUATE PROGRAMME IN MANAGEMENT

EC1205: INDIAN ECONOMY

COURSE OUTLINE
TERM III, 2018-19

Instructor and Contact Information

NAME: PROF. K G SAHADEVAN E-MAIL: DEVAN@IIML.AC.IN OFFICE:227 CHINTAN OFFICE TEL: 6658
NAME: PROF. HRUSHIKESH PANDA E-MAIL: HPANDA@IIML.AC.IN OFFICE: NOIDA CAMPUS OFFICE TEL: 8413

COURSE CREDIT: 0.5

COURSE DESCRIPTION
The Indian economy and its experience in policy making have always been a favorite topic of discussion among
development economists world-wide. Moreover, comparisons are often being made between India, and China and the
east and south-east Asian economies with regard to the economic processes, policies and institutional reforms that have
transformed the economic environment, particularly during the post-1991 reform period. This unprecedented interest is
attributed to the transformation of India as one of the fastest growing emerging economies in the world today. In this
backdrop, the present course aims to offer a deeper understanding of critical features of the economy of India and assist
students to get to grips with the economic environment that surrounds the economy in an international comparative
context. Specifically, the course seeks to deal with the impact of economic policies, reforms and growth on poverty and
social development, and on agriculture, manufacturing and services sectors. The course is expected to enable students
to understand and appreciate the evolution of India as a leading emerging market economy in the world, its institutional
and policy framework, and its performance in terms of growth in income, output, employment, exports, etc. The course
will primarily focus on Indian economy in the post-reform phase, i.e., post-1991.

COURSE OBJECTIVE
The major objectives of the course are

1. to facilitate students to acquire in-depth understanding of the economy of India and to gain critical insights into its
competitiveness in the global market place.
2. to examine sector-specific policies and their impacts on shaping environment that surrounds businesses within the
country.
3. to create adequate understanding of pros and cons of the economic reforms initiated since 1991 and highlight major
policy debates that followed the reform process in India.
4. to help gather deeper understanding of the performance of Indian economy in comparison to that of the leading
emerging economies in the east and south-east Asia.

COURSE LEARNING OUTCOMES

By the end of the course the students should be able to:

1) gain deeper understanding of the economy of India and appreciate its transformation to one of the engines of global
economic growth today.
2) understand the institutional framework for growth and development in India and identify the roles of major domestic
economic institutions that shape the business environment.

-1-
3) identify major obstacles that prevent India from being one of the most preferred business destinations globally.
4) get to know various macroeconomic data sources and the nuances in using statistical information in analyzing
economic policy.
5) identify relevant issues for future research on India’s growth and development.
ALIGNMENTS OF INTENDED PROGRAM & COURSE LEARNING OUTCOMES
Sl No. Programme Objectives Course Learning
(CL) outcomes
1 To acquire knowledge and skills in key functional areas
CL 1
2
To internalize the knowledge and skills in key functional areas CL 5
3 To integrate and apply business knowledge CL 2, CL 4
4 To develop a global perspective CL 3
5 To inculcate values of professionalism, ethical leadership and social Project/assignments
responsiveness
6 To master relational and interpersonal communication skills Project

REQUIRED COURSE MATERIALS AND READINGS

TEXTBOOK
The Concise Oxford Companion to Economics in India, Basu, Kaushik and A. Maertens (Ed.), Oxford University Press,
New Delhi, 2010 (BM).

Additional materials, including essential and supplementary readings, may be handed out in class and/or posted on
Claroline/Google drive as and when required for free access to all students who have registered for the course.

EVALUATION
Examination: There will be only one written examination at the end of the course.

Project and Assignment: The project seeks to sensitize students to some of the critically relevant Indian economy specific
issues that are expected to impact domestic business environment in general, and various sectors in particular. This will
engage students in preparing a report on the assigned topic in the context of theories and models, if any, learnt in the
class. Projects can be a group level activity for each team of 4-5 students to study and present a report on certain leading
economic issues in a defined format. Assignments can be individual and shorter take-home workouts on data/analysis.

Class Participation: Students are responsible for all materials covered and readings assigned, and are expected to
come prepared to answer certain questions that had been emphasized in previous classes or from the relevant
readings. The score for participation depends on the extent of commitment to assignments/projects, individual
performance in discussions and overall conduct in the classroom. In addition, due weights will be given to the
attendance and discipline of each student.

GRADING SCHEME
End Term Exam 60 %
Assignments 15 %
Group Project 15%
Participation 10%
Total 100

-2-
ACADEMIC DISHONESTY
Academic dishonesty or misconduct consists of misrepresentation by deception or by other fraudulent means. In an
academic setting, this may take a number of forms such as copying or use of unauthorized aids in examinations,
individual and group assignments; plagiarism; talking during examinations; sleeping or working on mobile during
lectures; submission of work generated by other students; aiding and abetting another student’s dishonesty; and giving
false information for the purpose of gaining marks. No excuses for such offenses, including ignorance of the policy, are
accepted. It is a violation of trust between the Institute and its stakeholders. Students are advised to consult the relevant
section/s of PGP Manual.

COURSE SCHEDULE
Session Topics Readings and Book Assessment Criteria
Chapter/section
01 Indian economy – demography, structure and ER 1 & 2 A mix of class
composition SR 1: Chapter 1 participation, project,
• India’s Economic Reforms in 1991 – genesis SR 3: Chapter 1 assignment and
of the crisis, the remedy, recovery and ER 3 examination
transformation

02 Economic institutions and growth – ER 4, 5 & 6 ”

international perspective
• Transformation from state domination to ER 7, 8 & 9
market orientation – privatization in India
and China
• India and East Asian growth – Lessons learnt ER 10

03 - 04 The Agrarian economy of India BM (Agriculture, Rural ”

• Performance of the Indian agriculture Economy, and Natural
• The agrarian crisis Resources),
• Growth strategy and transformation in a SR 2: Chapter 7
comparative context – India, China and South SR 3: Chapter 6
Korea ER 11, 12 & 13

05 - 06 Industrial policy and strategy – the past and the BM (Industry) ”

present ER 14, 15 & 16
• Globalisation of Indian industry, role of SR 2: Chapter 8
foreign capital and technology
• Productivity and Efficiency in Indian
Industry
• Industry environment – India Vs China and
South Korea
07 - 08 Service sector as growth engine BM (Services, Financial ”
• Tertiarisation – the pros and cons Sector)
• Globalization of services – WTO and India ER 17, 18
SR 2: Chapter 9

09 India’s road-blocks to growth - poverty, BM (Population, Labour, ”

unemployment and labor markets and Employment; Human
Development)
ER: 19, 20
SR 2: Chapter 10
SR 3: Chapter 15

10 India’s Trade and Balance of Payments BM (External Sector), ”

• Foreign debt – sovereign and private ER: 21, 22 & 23
• India and the new international trade order – SR 2: Chapter 6
the emerging global business environment

-3-
SELECTED READINGS

Essential Readings (ER)

1. Demographic Transition, savings, and economic growth in China and India, Joe, William, Atish Kumar Dash and
Pradeep Agrawal, Working Paper No. 351, Institute of Economic Growth, Delhi, 2015.
2. Nayyar, Gaurav, “Inside the black box of services: evidence from India”, Cambridge Journal of Economics, vol.37,
pp. 143-170, 2013.
3. Kotwal, A., B Ramaswami and W Wadhwa, “Economic Liberalisation and Indian Economic Growth: What’s the
Evidence?’’, Journal of Economic Literature, 49(4), 2011, pp.1152-1199.
4. Virmani, Arvind, “Institutions, governance and policy reform – A framework for analysis” Economic and Political
Weekly, Vol. XL (22/23), May 28 – June 4, 2005.
5. Acemoglu, D and James Robinson, Why Nations Fail – The origins of power, prosperity and poverty, Profile Books:
London, 2012, Ch. 13 and 14.
6. Weil, Robert, “A House Divided: China after 30 years of ‘Reforms’”, Economic and Political Weekly, Dec. 27,
2008, pp.61-68.
7. Reddy, Y. V, “State and Market – Altering the Boundaries and Emerging New Balances”, Economic and Political
Weekly, Oct 16-23, 1999.
8. Rangarajan, C, “State, Market and the Economy – The shifting Frontiers”, Economic and Political Weekly, Vol.
35(16), 15 April, 2000, pp. 1386-90.
9. Qian, Yingyi, “The institutional foundations of China’s market transition”, Annual World Bank Conference on
Development Economics, Pleskovic, B and J E Stiglitz (Ed.), World Bank: Washington, 1999, pp.377-398.
10. Stiglitz, J.E, Some Lessons from the East Asian Miracle, World Bank Research Observer, Vol.11, No. 2, 1996.
11. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, “Agricultural Growth in India Since 1991”, DRG Study
No. 27, DEAP, Reserve Bank of India, Mumbai, 2008.
12. Nadkarni, M V, “Crisis in Indian Agriculture – Can it be Overcome?”, Economic and Political Weekly, Vol. LIII
(17), 2018.
13. Fan, S and Gulati, Ashok, “The Dragon and the Elephant: Learning from Agricultural and Rural Reforms in China
and India”, Economic and Political Weekly, June 28, 2008, pp. 137-44.
14. Nagaraj, R, “Industrial Growth in China and India – A Preliminary Comparison”, Economic and Political Weekly,
May 21, 2005, pp. 2163-71.
15. Trivedi, P, L. Lakshmanan, R. Jain and R K Gupta, Productivity, Efficiency and Competitiveness of the Indian
Manufacturing Sector, DRG Study No. 37, DEPR, Reserve Bank of India, Mumbai, 2011.
16. Pandey, Manish and Xiao-yuan Dong, “Manufacturing productivity in China and India: The role of institutional
changes”, China Economic Review, Vol. 20, pp. 754–766, 2009.
17. Eichengreen, Barry and Poonam Gupta, “The Service sector as India’s road to Economic growth? Working Paper
No. 249, ICRIER, Delhi, 2010.
18. Financial Market Evolution and Globalisation, Chapter VI, Vol. II, Report on Currency and Finance - Special
edition, Reserve Bank of India, 2004-05, pp. 156-189.
19. Thomas, J Jose, “India's Labour Market during the 2000s: Surveying the Changes”, Economic and Political Weekly,
Vol. 47, No. 51, pp. 39-51, 2012.
20. Mehrotra, Santosh, “Quantity & Quality: Policies to Meet the Twin Challenges of Employability in Indian Labor
Market”, Indian Journal of Industrial Relations, Vol. 49, No. 3, pp. 367-377, 2014.
21. Veeramani, C, “Anatomy of India's Merchandise Export Growth, 1993-94 to 2010-11”, Economic and Political
Weekly, Vol. 47, No. 1, pp. 94-104, 2012.
22. Rangarajan, R, “Some Issues in External Sector Management”, Economic and Political Weekly, Vol. VIII (21),
2018, pp. 35-42.
23. Mckinnon, R and Gunther Schnabl, “China’s Exchange Rate and Financial Repression: The Conflicted Emergence
of the Renminbi as an International Currency”, CESifo Working Paper No. 4649, Centre for Economic Studies and
Info Institute, Feb. 2014.

Supplementary Readings (SR)

1. Economic Survey 2017-18, Vol-1, Ministry of Finance, GoI, New Delhi.
2. Economic Survey 2017-18, Vol-2, Ministry of Finance, GoI, New Delhi.
3. India Development Report 2012-13, IGIDR, Mumbai.
4. Tipton, Frank B, Asian Firms – History, Institutions and Management, Edward Elgar, 2007.
5. Nakamura, Masao, (Ed.) The Japanese Business and Economic System, Palgrave, 2001.
6. Chandra, Bipan, M. Mukherjee and A. Mukherjee, India since Independence, Penguin: India, 2008, Ch. 25-28.
*
-4-