Zainab pointed out this exciting discussion sparked by rediff articles written by Dilip and Yazad. I agree with Yazad that one needs real indicators to discuss the effect of economic reforms in India. The three measures suggested by him are per capita income, Human Development Index, and the Index of Economic Freedom. I don't have any trouble with the first two, but the third one seems quite subjective, and reflects the priorities and perspectives of the Heritage Foundation. Never the less, I would agree that economic conditions are definitely better in India today than they were in 1990.
So the question would be whether we can do better going ahead? As Dilip points out, the fact that average income level is Rs. 12000 a year in 1994 Rupees, when so many of us are making so much more, indicates two things: 1. In absolute numbers there are a large number of people still living in poverty (29%) as noted here. 2. Even though poverty rates may have reduced since 1990, large inequality still persists and in fact may have grown since 1990. The second point, though, is less important than the first one in my opinion for the time being.
This is a very healthy dialogue, and I look forward to more on this topic in the future.
UPDATE (05/12): Nanopolitan has more. See also this IHT piece: Help the Poor Help Themselves.
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