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Policies of Economic Reforms in India Appear Antithetical to the Path of Inclusive Development: A Proposition
The economic reform measures being implemented in India now for nearly three decades can be traced to well-known Washington Consensus doctrine. Many aspects of this doctrine appear antithetical to the policies of inclusiveness pursued in India. Public policy interventions, particularly those favouring social sector development, are found as essential ingredients of " inclusive development" strategy. This requires resource mobilisation from the rich. But, marginal tax rates in India have been drastically moderated during the reform period. The most conspicuous aspect of income and asset inequalities relates to the urban sector. The data from Income tax revenue statistics bring out such growing inequalities. Property taxes covering taxes on wealth, estate and inheritance and gift constitute a ridiculously miniscule amount in India. Urban inequalities are further exemplified by explosive growth in the remunerations of company executives. Inadequate budget resources are reflected inadequate budgetary allocations for social sector development.. For want of resources the social services, essentially health and education, have badly suffered both in quality and equity. India's Inclusive Development Index (IDII) rank has been placed as low as 60 amongst 79 developing economics by World Economic Forum (WEF). The Forum recommends a more progressive tax system to help raise capital for expenditure on infrastructure, health care basic services and education, The paper also concludes that the most dominant consequence of inequality is the narrowing of the domestic market, thus the demand getting restricted to a narrower and narrower basket of goods and services".

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