2. NCAER’s Golden Jubilee:
1956–2006
The NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH (NCAER) was formally
inaugurated by the then President of India, Rajendra Prasad, on December 18, 1956. Its creation
formed part of a broader effort to strengthen India’s institutional competence in economics. The
Council’s original Governing Body included leading figures from both public and private sectors:
John Mathai, C.D. Deshmukh, T.T. Krishnamachari, V.T. Krishnamachari, Ashoka Mehta,
J.R.D. Tata, John F. Sinclair and N.R. Pillai. Initial financial support was provided by the Ford
Foundation which has continued to support the Council over the years. The first Director-
General, P.S. Lokanathan, took over the post after serving the Economic Commission for Asia
and Far East as its first Secretary-General. The bulk of the Council’s revenue comes from studies
done on contract for sponsors in Government, the development community and the private sector.
While all studies are managed by NCAER’s senior staff, they are often conducted in partnership
with other organisations and individuals, located both in India and abroad.
Today, NCAER has links with major policy research institutions and universities outside
India including the National Bureau of Economic Research, Cambridge (Mass.), USA; the
Brookings Institution, Washington DC; Centre for Economic Policy Research, London;
University of Maryland, College Park, MD and the University of Oxford.
The NCAER work programme is currently divided into four broad research groupings:
• Growth, trade and economic management
• Investment climate, physical and economic infrastructure
• Agriculture, rural development and resource management
• Household behaviour, poverty, human development, informality and gender
A broad theme that flows through the Council’s research activities is the progress of India’s
economic reform programme and its impact on agriculture, industry and human development.
Mr. Suman K. Bery, the current Director-General, assumed charge on January 1, 2001. He
was earlier with the World Bank in Washington D.C. where he held a number of positions
concerned with economic research and analysis. Between 1992 and 1994, Mr. Bery was based in
Mumbai as Special Consultant to the Governor of the Reserve Bank of India (RBI).
The theme underpinning of the Golden Jubilee celebration is “The Role of Applied
Economic Research in Post-Independence India” and a special volume on this has been
commissioned.
4. August 2006
Published by
Rajesh Chadha
Senior Counsellor [Operations] and Secretary
National Council of Applied Economic Research
Parisila Bhawan, 11 Indraprastha Estate, New Delhi 110 002
T +91 11 2337 9861–63 F +91 11 2337 0164
E infor@ncaer.org W www.ncaer.org
5. Contents
LIST OF ABBREVIATIONS iv
THE INSTITUTION
THE GOVERNING BODY 1
FOUNDER MEMBERS 2
THE GENERAL BODY 2
DIRECTOR-GENERAL’S REPORT 5
ACTIVITIES 2005–06
PUBLICATIONS 11
PUBLIC AFFAIRS 17
RESEARCH PROGRAMMES 21
GROWTH, TRADE AND ECONOMIC MANAGEMENT 25
INVESTMENT CLIMATE, PHYSICAL AND ECONOMIC INFRASTRUCTURE 33
AGRICULTURE, RURAL DEVELOPMENT AND RESOURCE MANAGEMENT 37
HOUSEHOLD BEHAVIOUR, POVERTY, HUMAN DEVELOPMENT, INFORMALITY AND GENDER 41
FINANCES 2005–06
ANNUAL ACCOUNTS 2005–06 47
APPENDIX I: ACTIVITIES OF SENIOR STAFF 67
APPENDIX II: RESOURCES
STAFF COMPOSITION 75
LIBRARY 79
COMPUTER CENTRE 81
CONTENTS III
6. Abbreviations/Acronyms
ACIAR Australian Centre of International Agricultural Research
ADB Asian Development Bank
AFMI American Federation of Muslims of Indian Origin
AIMA All-India Management Association
AoA Agreement on Agriculture
APEDA Agricultural and Processed Food Export Development Authority
APL Above Poverty Line
ARIS Additional Rural Income Survey
ASSOCHAM Associated Chambers of Commerce and Industry
BCI Business Confidence Index
BITS Birla Institute of Technology and Science
BPL Below Poverty Line
CCI Competition Commission of India
CDPOs Child Development Project Officers
CEAs Committee on Economic Affairs
CEPR Centre for Economic Policy Research
CGE Computable General Equilibrium
CICs Community Information Centres
CII Confederation of Indian Industry
CPRC Chronic Poverty Research Centre
CSIR Council for Scientific and Industrial Research
CSO Central Statistical Organisation
CUTS Consumer Unity and Trust Society ( Jaipur)
DDA Delhi Development Authority
DEA Development of Economic Affairs
DELs Direct Exchange Lines
DEPB Duty Entitlement Pass Book (scheme)
DFID Department for International Development (U.K.)
DIT Department of Information Technology (Govt. of India)
DNA Daily News and Analysis
DRDO Defence Research and Development Organisation
DWCD Department of Women & Child Development (Govt. of India)
ECARES European Centre for Advanced Research in Economics and Statistics
ECCP Europe- India Cross Cultural Programme
EPS Electronic Payment System
EU European Union
IV NCAER ANNUAL REPORT 2005–2006
7. 2005 2006
FDI Foreign Direct Investment
FICCI Federation of Indian Chambers of Commerce and Industry
FPAC Fiscal Policy Analysis Cell
FTA Free Trade Agreement
GDP Gross Domestic Product
HDFC Housing Development Finance Corporation
HDI Human Development Index
HPCL Hindustan Petroleum Corporation Limited
IAMR Institute of Applied Manpower Research
IASSI Indian Association of Social Sciences Institutions
ICAI Institute of Chartered Accountants of India
ICRIER Indian Council for Research on International Economic Relations
IEG Institute of Economic Growth
IMFL India-Made Foreign Liquor
INSA Indian National Science Academy (New Delhi)
IOT Input-Output Table
IPF India Policy Forum
IRR Incremental Rate of Return
IWT Inland Waterways Transportation
JETRO Japan External Trade Organisation
JKP Jan Kerosene Pariyojana
JSG Joint Study Group
LPG Liquefied Petroleum Gas
METI Ministry of Economy, Trade and Industry (Govt. of Japan)
MISH Market Information Survey of Households
NACO National AIDS Control Organisation
NARS National Agricultural Research System
NAS National Accounts Statistics
NATP National Agricultural Technology Project
NBER National Bureau of Economic Research (Cambridge, MA, USA)
NIC National Informatics Centre
NIPFP National Institute of Public Finance and Policy (New Delhi)
NORAD Norwegian Agency for Development Cooperation
NSHIE National Survey of Household Income and Expenditure
NSSO National Sample Survey Organisation
O&M Organisation & Management
OECD Organisation for Economic Cooperation and Development
ORS Oral Rehydration Solution
PDS Public Distribution System
PER Poverty and Economic Policy
PHDCCI Punjab, Haryana and Delhi Chamber of Commerce and Industry
PPAC Petroleum Planning and Analysis Cell
REDS Rural Economic and Demographic Survey
RITES Rail India Technical and Economic Services Ltd.
SAM Social Accounting Matrix
SANEI South Asia Network of Economic Research Institutes
ABBREVIATIONS/ACRONYMS V
8. 2005 2006
SBI State Bank of India
SDP State Domestic Product
SKO Superior Kerosene Oil
TERI Tata Energy and Resources Institute
TES Techno-Economic Surveys
TRIMs Trade Related Investment Measures
TSA Tourism Satellite Account
UNDP United Nations Development Programme
USAID United States Agency for International Development
USOF Universal Service Obligation Fund
UT Union Territory
VPTs Village Public Telephones
WHO World Health Organisation
WTO World Trade Organisation
VI NCAER ANNUAL REPORT 2005–2006
9. The Institution
THE GOVERNING BODY*
The Governing Body met four times during 2005–06: on April 11, July 20, November 22, 2005,
and March 30, 2006. The General Body met on July 20, 2005.
President
Bimal Jalan
Vice President
M.S. Verma Ex-Chairman, Telecom Regulatory Authority of India and State Bank
of India
Secretary
Rajesh Chadha Senior Fellow and Senior Counsellor (Operations) and Secretary
Members
Shankar N. Acharya Honorary Professor and Member, Board of Governors, Indian Council
for Research on International Economic Relations (ICRIER), New
Delhi
Isher J. Ahluwalia Chairperson, Board of Governors, Indian Council for Research on
International Economic Relations (ICRIER), New Delhi
Mukesh D. Ambani Chairperson, Reliance Industries Ltd., Mumbai
Suman K. Bery Director-General, NCAER, New Delhi (ex-officio)
Surjit S. Bhalla Managing Director, O(x)us Investments Pvt. Ltd., New Delhi
Tarun Das Chief Mentor, Confederation of Indian Industry (CII), New Delhi
Yogesh C. Deveshwar Chairperson, ITC Ltd., Kolkata
Ashok Jha Secretary, Economic Affairs, Ministry of Finance, Government of India
(ex-officio)
Ashok S. Ganguly Chairperson, ICICI One-Source Ltd., Mumbai
K.V. Kamath Managing Director and CEO, ICICI Bank Ltd., Mumbai
Naina Lal Kidwai Chief Executive Officer, Hongkong and Shanghai Banking
Corporation, Mumbai
Anand G. Mahindra Managing Director and Vice-Chairperson, Mahindra & Mahindra
Ltd., Mumbai
R.A. Mashelkar Director-General, Council for Scientific and Industrial Research
(CSIR), New Delhi
Kiran Mazumdar-Shaw Chairperson & Managing Director, Biocon India Ltd., Bangalore
Rakesh Mohan Deputy Governor, Reserve Bank of India
Rohini Nayyar Ex-Senior Consultant, Planning Commission, New Delhi
Deepak S. Parekh Chairperson, Housing Development Finance Corporation Ltd.
(HDFC), Mumbai
Rajendra S. Pawar Chairperson, National Institute of Information Technology (NIIT),
New Delhi
* As on August 1, 2006.
THE INSTITUTION 1
10. 2005 2006
FOUNDER MEMBERS
J.R.D. Tata John Mathai
N.R. Pillai V.T. Krishnamachari
C.D. Deshmukh J.F. Sinclair
T.T. Krishnamachari Ashoka Mehta
THE GENERAL BODY*
Life Members Patron Members
Subir Gupta Bata India Ltd.
S.M. Wahi DCL Polyesters Ltd.
D.N. Patodia ICICI Bank Ltd.
State Bank of India
Special Member
New Zealand High Commission, New Delhi
Corporate Members
1. A.F. Ferguson & Company 20.Insurance Regulatory and Development
2. Asian Development Bank Authority
3. Associated Chambers of Commerce 21. Kirloskar Oil Engines Ltd.
and Industry 22. Kochi Refineries Ltd.
4. Bank of Baroda 23. Life Insurance Corporation of India Ltd.
5. Bharat Petroleum Corporation Ltd. 24. Mahindra & Mahindra Ltd.
6. Confederation of Indian Industry 25. Mineral and Metal Trading Corporation
7. Central Electricity Regulatory of India Ltd.
Commission 26. Murugappa Management Services Ltd.
8. Crompton Greaves Ltd. 27. National Dairy Development Board
9. Eicher Goodearth Ltd. 28. National Mineral Development
10. E.I.D. Parry (India) Ltd. Corporation Ltd.
11. Federation of Indian Chambers of 29. PCP Chemicals Private Ltd.
Commerce and Industry 30. Pepsi Foods Private Ltd.
12. V. Malik and Associates, Chartered 31. Population Council for South and
Accountants East Asia
13. Godfrey Philips India Limited 32. Punjab National Bank
14. Godrej and Boyce Manufacturing Co. 33. Punjab University
Ltd. 34. PHD Chamber of Commerce and
15. Hindalco Industries Ltd. Industry
16. ICI India Limited 35. Rail India Technical and Economic
17. ICRA Ltd. Services Ltd. (RITES)
18. Indian Banks’ Association 36. Sakthi Sugars Ltd.
19. Industrial Development Bank of India 37. Shell India Private Ltd.
* As on March 31, 2006.
2 NCAER ANNUAL REPORT 2005–2006
11. 2005 2006
38. Standard Chartered Bank 42. Telecom Regulatory Authority of India
39. Tata Consultancy Services 43. Valsad District Co-operative Milk
40. Tata Iron and Steel Company Ltd. Production Union
41. Tata Power Company Ltd. 44. XLO India Ltd.
Ordinary Members
1. D.R. Agarwal 6. EPW Research Foundation
2. M. Balasubramaniam 7. Global Business Park
3. Birla Institute of Technology and Science 8. Vikram Kumar
(BITS) 9. Martin and Harris Pvt. Ltd.
4. Central Leather Research Institute 10. Rajan S. Talekar
5. R.T. Doshi
Number of Members
March 31, 2005 March 31, 2006
Corporate members paying Rs. 5,000/-
per annum 48 44
Ordinary members paying Rs. 500/-
per annum 13 10
Patron members paying a one-time
subscription of Rs. 1 lakh 4 4
Special members paying a one-time
subscription of Rs. 1 lakh 1 1
Total 66 59
Total fees received Rs. 2,40, 000 Rs. 2, 25, 000
THE INSTITUTION 3
12. THE FIRST PRIME MINISTER
OF INDIA, PANDIT
JAWAHARLAL NEHRU,
LAYING THE FOUNDATION
STONE OF THE COUNCIL'S
BUILDING IN 1959
THE NCAER’S FOUNDATION STONE IN ITS
GOLDEN JUBILEE CELEBRATION YEAR
13. Director-General’s Report
THE GOLDEN JUBILEE pattern has endured through the five
2006–07 is being commemorated as NCAER’s intervening decades; even today, 50 years later,
Golden Jubilee. Preparing for these revenue from projects (and seminars) accounts
celebrations has stimulated a valuable review of for some 90 per cent of our total revenue of
the origins and purposes of the Council. It has Rs. 11.5 crore.
also prompted an assessment in the Governing The NCAER of 2006 remains true to the
Body and among the senior staff of what has vision of its founders; we continue to believe
endured, what has changed, and how to keep that diversified support is the best guarantee of
the Council relevant to serve India in the both accountability and independence. Yet
coming decades. experience has shown that high reliance on
I am happy to say that the tradition of wide project revenue alone creates difficulties in
support from government, industry, and building and retaining capacity. Accordingly,
academia for NCAER continues, as a glance at since the early 1990s, my predecessors and I
the composition of the current Governing have aimed to supplement project revenue
Body will indicate. I am particularly grateful with corpus (and other untied grant income)
for the exceptional support that has been to provide a necessary anchor for sustaining
provided by the President, Dr. Bimal Jalan, the capacity and building scale in the Council’s
Vice-President, Mr. M.S. Verma, and others in activities.
the Governing Body in planning and Under the McKinsey-led review of the
implementing our Golden Jubilee activities. Council in 2001, it was suggested that we
I feel honoured and privileged to be the should aim for at least 30 per cent of our work
Director-General of the Council at this to be endowment-supported. In reviewing past
important milestone. It coincides with the Annual Reports, I find that this was also a
start of my second term, and I am grateful to target enunciated in 1996 by my immediate
the members of the Governing Body for their predecessor, Dr. Rakesh Mohan. This remains
continued trust in me. a benchmark toward which we continue to
While the Council was provided a work, both in raising our endowment and
handsome initial grant of both money and improving its management. Accordingly, as
land by the Ford Foundation and the part of the Golden Jubilee effort, we are taking
Government, there was concern from the a fresh look at our investment policies, as per
outset to establish and to preserve the regulations applicable to non-profit
intellectual independence of the Council, as organisations.
well as to ensure the practical orientation of Two other long-standing characteristics of
the Council’s work programme. the Council are its capacity for large-scale
Accordingly, it was expected that the data-collection and its relatively large size.
Council would be substantially financed I am indebted to my illustrious predecessor,
through fees for its analyses and advice. This Dr. I.Z. Bhatty, for his recollections on how
DIRECTOR-GENERAL’S REPORT 5
14. 2005 2006
these features came to be. He points out that symbolises the cordial, professional
the Council was created at the start of the relationship that the NCAER and the NSSO
Second Five-Year Plan, which was India’s first have established over the years.
serious effort at planned development. The These initial studies helped NCAER
need to plan imposed a burden on the States establish a capacity for organising large-scale
for which they were unprepared. The result surveys with greater flexibility than was
was a series of techno-economic surveys possible for the NSSO, while respecting
(TES) for individual States undertaken by the academic standards for management of both
newly-formed NCAER. Because the TES had sampling and non-sampling errors. This
to be done for all States in a hurry, the size of capacity has been used over the years to
the Council enlarged rather rapidly. provide fundamental information in areas as
NCAER’s subsequent entry into the area diverse as the dairy sector, household
of large-scale household surveys further consumption of energy, the fertiliser sector and
determined the Council’s scale. In the 1950s the like. A landmark study in the early 1970s
and 1960s, the fundamental development task was the multi-round Additional Rural Income
was to raise the investment rate. Sustainable Survey (ARIS) designed to capture the impact
financing entailed a corresponding rise in of the Green Revolution on rural welfare.
domestic savings. At the time, there was no Follow-up surveys of the same households
reliable information on household incomes periodically over the next 35 years (including a
and savings at the national level, especially in round currently being collected) have provided
respect of rural households. NCAER’s all- a matchless longitudinal resource for
India surveys provided some of the earliest understanding rural development and
direct estimates of household incomes, savings economic change over the bulk of the
and consumption, and helped to establish the Council’s existence.
Council’s capacity for large-scale household A glance at the Annual Reports from as far
surveys, which has been one of its hallmarks back as the early 1960s shows much continuity
over the years. NCAER was a pioneer in the with the Council’s work today. The continued
field leading the way for subsequent official focus on savings and consumption has already
exercises by the Reserve Bank of India and been noted, but there was an equally strong
others. focus on infrastructure and energy which
Given the preference of the Government’s continues. A large number of studies
National Sample Survey Organisation forecasting demand for consumer goods find
(NSSO) to collect information on their echo in our ongoing work on consumer
consumption rather than income, such markets. The array of sponsors as between
systematic information as exists on income Government, private sector and international
(and income distribution) in India, particularly bodies is also quite similar to today.
rural India, has in general been generated As I indicated in last year’s message, our
through NCAER’s various surveys over the international contacts are, at present, extremely
years. Indeed, in some ways we have returned vibrant. It is instructive to find that there was a
to our roots as the current round of the Market steady stream of international academics even
Information Survey of Households (MISH) in the early 1960s. Indeed, in certain other
has been extended to provide fuller data on respects such as revenue from publications and
household incomes than in the past. I am staff training and development, the Council of
grateful to Dr. N.S. Sastry, former Director- the early 1960s was perhaps even more
General of the NSSO for his expertise and advanced than that of today.
wise counsel in assisting us in this matter. This In sum, the NCAER today is a continuing
6 NCAER ANNUAL REPORT 2005–2006
15. 2005 2006
testament to the energy and foresight of a Office (CSO). The NCAER’s methodology
diverse group of leaders in a young nation who and sample design for capturing domestic
had a belief in the importance of empirical travel was hailed by the World Tourism
analysis as a basis for sound decisions in both Organisation as a model for other developing
the public and private spheres. It was a vision countries.
born of the confidence that India was destined NCAER was requested by the Ministry of
to be a serious and important nation in the Petroleum and Natural Gas to undertake a
world, which deserved institutions of this major study of household distribution of
stature. It is fortunate that the Council’s Superior Kerosene Oil (SKO). SKO is an
Golden Jubilee is taking place at a moment important household fuel used for both
when India’s horizons seem limitless and when lighting and heating. It is provided through
confidence is once again widespread. Our the public distribution system (PDS) at below
Golden Jubilee celebrations are accordingly an market prices by the Union Government, with
opportunity to salute the vision of our the ultimate responsibility for distribution and
predecessors, to acknowledge the continuing pricing resting with State Governments. The
validity of the model they created, and to NCAER’s study provided estimates of the
upgrade our capacity to be of service to the reach of the PDS, State taxation of SKO, the
nation in the exciting times that lie ahead. differences among States in organising the
distribution of kerosene, and of the apparent
Academic Highlights diversion of household kerosene to other uses.
The Council’s capacity for large-scale data Innovative and sensitive field work was
collection was demonstrated in many contexts also required in our project for the National
in 2004–05. We were honoured by the Prime AIDS Control Organisation (NACO),
Minister’s launch of the India Science Report supported by NCAER’s long-standing partner
commissioned by the India National Science the UNDP, to measure the socioeconomic
Academy (INSA) in a ceremony at Vigyan impact of HIV-AIDS in the six high-
Bhavan. I would like to thank our Governing prevalence States of India. The study team had
Body Member, Dr. R.A. Mashelkar, current to grapple with difficult issues of
President of INSA, for providing this visibility confidentiality and sensitivity to gather this
to our work. information which has generated a very
In his remarks at the launch, and in important data set on the subject.
subsequent statements, the Prime Minister has As mentioned earlier, Dr. N.S. Sastry,
repeatedly referred to the findings of the study, formerly of the NSSO, has kindly assisted the
particularly on the declining interest in science NCAER in an appraisal of its field-work and
studies as students enter higher classes. These data dissemination activities, with a view to
results were based on a large survey designed making them more robust and transparent. We
by NCAER’s staff in consultation with INSA, are indebted to him for his advice.
which drew upon international best practice in There was considerable activity on a range
science surveys. of other fronts as well. We were approached by
Earlier, work to capture data on domestic the Ministry of Commerce and Industry of the
tourism led to a further assignment from the Sultanate of Oman for advice on setting up a
Ministry of Tourism to assemble India’s first policy research cell within the Ministry. It is
“Domestic Satellite Accounts” – an exercise striking to note that this form of advisory work
coordinated by NCAER with advisory input was anticipated and provided for in the
by a broad range of statistical agencies original memorandum of association of the
including the RBI and the Central Statistical NCAER!
DIRECTOR-GENERAL’S REPORT 7
16. 2005 2006
Our own partnerships, international and position of Finance Officer till late in the year,
domestic, have continued to flourish, with we retained Messrs. Ajay Sethi Associates as
regular joint activities with the National financial advisors to ensure the integrity of our
Bureau of Economic Research (NBER), The internal systems, and of our compliance with
Brookings Institution, and the Australia-India statutory functions. I would like to repeat my
Council, documented elsewhere in the report. thanks to our Vice-President, Mr. Verma, for
We deepened our cooperation on the considerable time and interest he expends
infrastructure and regulation with a in advising us on these matters.
consortium of three European institutions, led The financial outcome revealed in the
by the Centre for Economic Policy Research accounts reflects continued productivity
(CEPR), London and supported by the improvement, in that there has been a large
European Union Mission to India under the increase in both gross and net project revenues
Europe-India Cross Cultural Programme (net of payment to professionals and
(ECCP). The grant permitted original papers survey/data gathering) with no increase in staff
to be commissioned on issues in infrastructure salaries and allowances. A glance at the
regulation and on public-private partnerships. staffing composition table shows that the latter
We were honoured that Montek Singh reflects continued (though slowing) reduction
Ahluwalia, Deputy Chairman of the Planning in the size of our regular research staff,
Commission, participated in the launch complemented by a fluctuating body of non-
workshop for this event. Extensive data regular research staff. As in previous years let
gathering and clearing continues on important me salute all the Council’s staff, research and
household data sets in cooperation with the support, regular and adhoc for their
Universities of Maryland, Harvard and Brown. professionalism, dedication and hard work.
Finally, I would like to acknowledge the The long-term trend has also been
continued support of the Ministry of positive. We have shed much of the excess
Commerce, which has been extremely capacity that perhaps existed on the research
generous in involving NCAER in policy- side, and we have been able to re-orient our
oriented work connected with many aspects of salary outgo once to payments linked to
India’s trade policy and trade negotiations. individual and corporate performance. Review
Their sustained interest has encouraged us to of our overhead expenses suggests that the
increase our capacity in this area. I was overhead “load” per project threatens to make
personally privileged to participate as a us uncompetitive, and that we may need to
member of the Indo-Japan Joint Study Group, expand our portfolio of projects to reduce this
chaired by the Secretary Economic Affairs, load. Accordingly, we followed a more
Shri Ashok Jha, a member of our Governing systematic approach to recruitment of
Body. researchers this year. The results were not
entirely commensurate with the effort, and we
Management and Finances will need to work even harder to attract talent
Considerable effort was devoted to a range of appropriate to our reputation and aspirations.
management initiatives over the year. While
progress is being made, it is slower than we Looking Forward
would wish. Project accounting, management Over the course of the past few years NCAER
of receivables, crystallisation of liabilities, has developed and upgraded a number of
statutory compliance, contract management channels for dissemination of research on the
and financing of capital assets all received Indian economy. These include the suite of
attention. As there remained a vacancy in the products connected with the Quarterly Review
8 NCAER ANNUAL REPORT 2005–2006
17. 2005 2006
of the Economy (Business Expectation Survey, site to provide a spectrum of data and views on
MacroTrack, the Quarterly Review of the the Indian economy. In the earlier part of this
Economy report itself ); Artha Suchi; Margin; Report I focused on the continuity in our
the India Policy Forum; and Connexions. work; these are some of our fresh departures.
Several of these are peer – reviewed and are I believe they remain consistent with our core
designed to provide an arena for empirical purpose and mandate: to bring data and
debate on policy issues facing the Indian analysis to bear, in a neutral and professional
economy. This bouquet of print offerings will way, to the challenge of India’s economic
be complemented with our redesigned web- development as it evolves.
DIRECTOR-GENERAL’S REPORT 9
18. THE PRESIDENT, DR BIMAL
JALAN, DELIVERING A
SPEECH ON THE OCCASION
OF THE NCAER GOLDEN
JUBILEE CELEBRATION
EVENT AT NCAER, NEW
DELHI, MARCH 30, 2006
GOVERNING BODY
MEMBERS AT A GET-
TOGETHER WITH NCAER
STAFF MEMBERS ON THE
NCAER LAWNS ON THE
OCCASION OF THE NCAER
GOLDEN JUBILEE
CELEBRATION EVENT AT
NCAER, NEW DELHI, MARCH
30, 2006
19. Activities 2005-06
PUBLICATIONS*
BOOKS these items – by income as well as occupation
groups – in different cities as well as States.
The Great Indian Market: Results from the In addition, The Great Indian Market
NCAER Market Information Survey of introduces various new analyses. For example,
Households it includes a consumption matrix that shows
(2005, NCAER AND BUSINESS STANDARD, PP. 284) the relationship between purchases of different
Since 1985–86, consumer durables. Such questions are at the
NCAER has been heart of any marketing campaign, and the
conducting the product matrix helps arrive at useful answers.
Market Information Another first is the move toward consumption
Survey of House- of services, such as data on the demand for life
holds (MISH) in a and medical insurance, credit and debit cards
broadly comparable and mobile phones.
and consistent The Great Indian Market also attempts to
framework. The measure the market for second-hand goods,
report stems from an and how this differs in the case of different
annual all-India NCAER survey of 300,000 durables, for different income/occupation
households over 515 cities and 400 districts. groups, and between rural and urban areas. It
While the focus of the MISH surveys has captures the prices paid for both new as well as
traditionally been ownership and purchase of second-hand goods by various income/
manufactured goods (consumer durables and occupation groups.
consumables), they are also distinctive in PRINCIPAL NCAER STAFF: RAJESH SHUKLA,
asking the respondent households about their SANJAY KUMAR DWIVEDI, ASHA SHARMA AND CHARU
household income. JAIN WITH ASSISTANCE FROM SUNIL JAIN OF BUSINESS
This is a comprehensive report on what the STANDARD
Indian consumer is buying and how the
pattern is projected to change by the end of the India’s Telecommunications Industry:
decade by examining the interaction between History, Analysis, Diagnosis
rising household income levels and evolving (ASHOK V. DESAI, 2006, SAGE (INDIA) LTD., PP. 294)
consumer preferences. It provides demand This study was commissioned by NCAER’s
trends for 20 categories of durable goods and Centre for Infrastructure and Regulation to
seven of consumer goods from actual provide an independent account of the
consumption in 1995–96 to projections for political economy of reforms in the telecom
2009–10 and details of who is purchasing sector, so as to draw lessons for reform in other
* Research programme and study output of the NCAER researchers published prior to August 1, 2006 in the form of books,
reports, journals, research papers and articles by NCAER as well as by other prestigious global and Indian publishing houses.
NCAER publications/ periodicals are available by direct/ email order, through subscription/ online order at the NCAER web site:
www.ncaer.org or publ@ncaer.org
ACTIVITIES 2005–06 11
20. 2005 2006
regulated sectors. In various States/Union
addition to the Territories and to
author’s analysis, the assess its demand by
volume is noteworthy different types of
for detailed ration cards and pla-
appendices that chart ces of residence; con-
the evaluation of the sumption and usage
sector over the last pattern of consumers
two decades. and leakage. It fore-
PRINCIPAL NCAER casts the demand for
STAFF: SUMAN BERY AND SKN NAIR kerosene and Liquefied Petroleum Gas (LPG)
and establishes correlations, if any, between the
Social Accounting Matrix for India: requirement of kerosene and release of new
Concepts, Construction and Applications LPG connections. The study found that the
(2006, SAGE (INDIA) LTD., PP. 438) per capita allocation of PDS kerosene is biased
This book presents a towards richer States and there is no set
new Social pattern of allocation to different types of cards.
Accounting Matrix PRINCIPAL NCAER STAFF: DEVENDRA KUMAR
(SAM) for the PANT, SHASHANKA BHIDE, P K ROY, S K DWIVEDI,
Indian economy for R K JAISWAL AND SHISHIR SHEKHAR
the year 1997–98. It
provides detailed and SERIALS
consistent infor-
mation on produc- India Policy Forum 2005–06 (Volume 2)
tion for 60 sectors, (Annual)
and on income distribution for six categories (2006, NCAER AND THE BROOKINGS INSTITUTION,
of occupational households, separately for WASHINGTON DC, SAGE (INDIA) LTD., PP. 308
rural and urban areas. Using fresh figures, the SUMAN BERY, BARRY BOSWORTH, AND ARVIND
authors also present the SAM for 2002–03. In PANAGARIYA (EDS.)
addition, this book goes into details of the India Policy Forum
concepts, methodology and limitations of the (IPF) is an annual
construction of SAM for India. This book will publication dedicated
be very useful for researchers who are working to analysing contem-
in the area of input-output analysis, SAM and porary trends in the
Computable General Equilibrium Modelling Indian economy. Its
for India. objective is to carry
PRINCIPAL NCAER STAFF: BASANTA K PRADHAN, theoretically rigorous
M R SALUJA AND SHALABH K SINGH yet empirically in-
formed research on current issues relating to
REPORTS India’s economic policy. A joint publication of
NCAER and Brookings, IPF serves as a forum
Comprehensive Study to Assess the for a global network of scholars interested in
Genuine Demand and Requirement of SKO India’s economic transformation.
(2005, NCAER, PP. 172) Contributor Highlights
A study on distribution of kerosene through • Willem H. Buiter and Urjit R. Patel on “Fiscal
the Public Distribution System (PDS) by Deficits, the Financial Sector, and Growth”
12 NCAER ANNUAL REPORT 2005–2006
21. 2005 2006
• M. Govinda Rao and R. Kavita Rao on “Tax Policy and provides a forum for
Tax Reform” well-known scholars,
• Sheetal K. Chand and Kanhaiya Singh on “Inflation civil servants and
Targeting” journalists to
• Surjit S. Bhalla and Tirthatanmoy Das on “Labor comment on public
Markets” affairs, while also
• Roger G. Noll and Scott J. Wallsten on “Universal serving as a vehicle
Service Obligation in Telecommunications” for dissemination of
research at the
SUBSCRIPTION PRODUCTS Council.
Contributor Highlights
Quarterly Review of the Economy • Chadha, R. and Sharma, Pooja (2005). “Liberalising
(NCAER, QUARTERLY PUBLICATION Indian agriculture.” 37 (3), Apr.-June.
COORDINATOR: DEVENDRA KUMAR PANT • Chadha, R. Pratap, Devender, Sharma, Pooja, &
Designed to meet the Tandon, Anjali (2005). “Indian textiles: weaving a
needs of policy success story.” 37 (4), July-Sept.
makers, corporates • Pant, Devendra Kumar, Jaiswal, Rajesh, and
and others interested Shekhar, Shishir (2005). “Household kerosene
in tracking the latest consumption patterns.” 38 (1), Oct.-Dec.
developments in the • Rao, Ch. Sambasiva (2005). “Information and
Indian economy, communication.” 38 (1), Oct.-Dec.
Quarterly Review • Arora, G.K. (2005). “The making of a statesman.”
provides an analysis 38 (1), Oct.-Dec.
of current policies • Asher, Mukul and Vasudevan, Deepa (2005). “The
and tracks developments in the domestic and role of pension regulators.” 38 (1), Oct.-Dec.
world economy. NCAER growth forecasts are • Chandra Mohan, N. (2005). “Stepping up FDI into
objective and widely quoted in Indian and India.” 37 (3), Apr.-June.
international media. The subscribers to • Chari, P.R. (2005). “Indo-US nuclear Deal.” 37 (4),
Quarterly Review also receive a copy of July-Sept.
detailed report on NCAER’s quarterly Business • Jain, Sunil (2005). “The war for the regulator’s
Expectations Survey. An integral part of heart.” 38 (1), Oct.-Dec.
Quarterly Review is its quarterly “State of the • Manas Chakrvarty (2005). “Global liquidity and
Economy” seminars organised at NCAER, emerging markets.” 37 (3), Apr.-June.
bringing together policy makers, industry • Mehta, Pradeep S. and Pranav Kumar (2005). “The
leaders and researchers on to a single platform. post-Hong Kong scenario.” 38 (1), Oct.-Dec.
• Subrahmanya, M.H. Bala, (2005). “SSI energy con-
Margin (Quarterly) sumption economics in Karnataka.” 37 (4), July-Sept.
(NCAER, ANNUAL SUBSCRIPTION INCLUDING POSTAGE, • Yue-Wei Hu. (2005). “Private (occupational) pensions
RS 500/ US $ 100) in China.” 38 (1), Oct.-Dec.
VOLUME 37, NUMBER 3, 4 AND VOLUME 38, NUMBER 1, 2
EDITOR: T C A SRINIVASA-RAGHAVAN Artha Suchi (Quarterly)
Margin’s emphasis on policy analysis and (NCAER, ANNUAL SUBSCRIPTION, INCLUDING POSTAGE,
application of modern quantitative techniques RS. 300/ US$ 80)
in developmental issues brings forth research VOLUME 22, NUMBER 3, 4 AND VOLUME 23, NUMBER 1, 2
findings in broad areas of applied economics, EDITOR: N J SEBASTIAN
ACTIVITIES 2005–06 13
22. 2005 2006
A computerised PARTICIPATING INSTITUTIONS
index of government NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH
reports/journal (NCAER)
articles/newspaper CENTRE FOR ECONOMIC POLICY RESEARCH (CEPR),
write-ups related to LONDON
the Indian economy, INSTITUTE D’ECONOMIE INDUSTRIELLE (IDEI), TOULOUSE
brought out by the EUROPEAN CENTRE FOR ADVANCED RESEARCH IN
NCAER Library. ECONOMICS AND STATISTICS (ECARES), BRUSSELLS
The Newsletter is intended to provide news
MacroTrack (Monthly) and analysis relating to the infrastructure
(NCAER, ANNUAL SUBSCRIPTION, INCLUDING POSTAGE, sector. Issues relating to regulation and
RS. 3,000/US $100) competition in the sector will be given special
VOLUME 7, NUMBER 4 TO VOLUME 8, NUMBER 3 (12 ISSUES) attention. The Newsletter also provides an
EDITOR: DEVENDRA KUMAR PANT opportunity to participating researchers to
Information and report on the work carried out in the project.
research-based
analysis on major OTHER PUBLICATIONS
trends in the
economy, industry, Bandyopadhyay, S (2006): “Cotton Textile
and finance. Industry in India: Implications for MFA
Supplementary Phaseout” in Beyond the Transition Phase of
analysis, based on WTO, Academic Foundation, Delhi.
NCAER’s Business
Expectations Survey Bedi, J.S (December 2005): “General Statistics
(BES) and the NCAER Macroeconomic for Food Processing Sector, 2005” – Databank
Forecast are also included. Each issue carries book, Ministry of Food Processing,
statistics on major States, based on current Government of India.
issues of economic importance.
Bhide, S, Chadha, R and Kalirajan, K (2005,
Connexions (Quarterly) December): “Growth Interdependence among
(NCAER, FREE) Indian States: An Exploration”, Asia-Pacific
VOLUME 1, NUMBER 1 TO VOLUME 2, NUMBER 2 (THREE ISSUES) Development Journal, Vol. 12, No. 2.
EDITOR: SHASHANKA BHIDE
“Efficiency, equity Bhide, S, Rajaraman I and Pattnaik R.K
and access in Indian (2005, October): “A Study of Debt
Infrastructure: blend- Sustainability at State level in India”, Reserve
ing competition and Bank of India, Mumbai.
regulation” (Project
co-funded by The Bhide, S and Mehta, A.K (2006): “Correlates
European Union of Incidence and Exit from Chronic Poverty in
under the “University Rural India: Evidence from Panel Data”,
and Studies” dimen- Chronic Poverty & Development Policy in India,
sion of the EU-India edited by Aasha Kapur Mehta and Andrew
Economic Cross-Cultural Programme). Shepherd, Sage Publications.
14 NCAER ANNUAL REPORT 2005–2006
23. 2005 2006
Buragohain, T (2005, October): “Level of Structural Adjustment Programme (SAP) in
Awareness of RTI/STI and HIV/AIDS, and Health and Family Welfare Sector in India”,
Gender Discrimination in Treatment in Working Paper No. 97 NCAER.
India”, published in a special international
conference volume titled Engendering Health Pohit, S (2005, December): “Mitigating
and Human Rights. Carbon Emission through Economic
Instruments: An Indian Perspective, 2005”,
Chadha, R (2005): “FTAs and Doha Working Paper No. 96, NCAER.
Development Round: Asian Response to EEU
and FTAA”, Global Economy Journal, 5(4), Pohit, S (2005, July): “Trade Facilitation
Berkeley Electronic Press. Problems & Informalisation of Trade: Lesson
from India-Bangladesh Trade”, proceedings of
Chadha, R (2005, Oct-Dec): “Sectoral the International Seminar on Indo-Bangladesh
Initiatives: A Paradoxical Component of Border Trade: Status & Prospects, North Eastern
NAMA!”, Trading Up, 1(3), Centre for Trade Hill University, Shillong.
and Development, OXFAM GB, New Delhi.
Pohit, S (2006, January): “WTO Agreement
Dubey, A, Palmer-Jones, Richard and Sen, K on Agriculture, Liberalisation in Select
(2006, March): “Surplus Labour, Social Struc- Countries, and Implications for South Asia: A
ture and Rural to Urban Migration: Evidence CGE Modelling Analysis,” proceedings of the
from Indian Data”, European Journal of Deve- International Conference on International Trade,
lopment Research, Vol. 18, No. 1, pp. 89–107. Jadavpur University, Kolkata.
Dubey, A and Gupta, N.D (2006, January): Pradhan, B.K and Amarendra, A (2006): “The
“Fertility and the Household’s Economic Impact of Trade Liberalisation on Household
Status: a Natural Experiment using Indian Welfare and Poverty in India,” MPIA
Micro Data”, Journal of Development Studies, Working Paper 2006–01, Poverty and
Vol. 41, No. 1, pp. 110–138. Economic Policy (PEP) Network,
(http://132.203.59.36/NEW-PEP/Group/
Dubey, A and Haan, A (2005, May): “Orissa: papers/papers/MPIA-2006 – 01.pdf ).
Poverty, Disparities or the Development of
Under-development?”, Economic and Political Shariff, A and Razzak, A (2006): “Communal
Weekly, pp. 2321–29. Relations and Social Integration in India,”
Social Development Report, Oxford University
Kaur, R (2005, Oct-Dec): “Indian Punjab: Press.
Social Regulation of Rice Production,” South
Asian Journal, Vol. 10, pp. 94–101. Shariff, A (2006): “Some Thoughts on Nature
and Persistence of Poverty in India,” in
Kumar, P, Pradhan, B.K and Subramanian, A Deprivation and Inclusive Development,
(2005, December): “Farmland Prices in a (editors) Diwakar, D.M and Mishra, G.P,
Developing Economy: Some Stylised Facts Manak Publications: pp. 295–335.
and Determinants,” Journal of International
and Area Studies, Vol. 12, No. 2, pp. 93–113. Shariff, A and Mondal, S.K (2006): “User
Fee in Public Health Care Institutions
Mondal, S.K and Kanwal, V (2006, March): Security: Health for All Dimensions
“Addressing Key Issues in the Light of and Challenges” (editors) Sujata Prasad and
ACTIVITIES 2005–06 15
24. 2005 2006
C. Sathyamala, Institute of Human Singh, K. and Bery, S.K (2005): “India’s
Development. Growth Experience”, in (editors) Wanda
Tseng and David Cowen India’s and China’s
Shariff, A (2006): “Household Food and Recent Experience with Reform and Growth,
Nutrition Security in India, Economic IMF and Palgrave-Macmillan, pp. 23–58.
Reforms and Food Security: The Impact of
Trade and Technology in South Asia” (editors) Singh, K (2006): Comment in M. Govinda
Suresh Chandra Babu and Ashok Gulati. Rao “Mid-year Review of the Indian Economy
2005–06, New Delhi, Shipra Publications in
Sharma, A (co-authored with) Cook, C.C, association with IIC/ MEAT, pp. 183–189.
Duncan, T, Jitsuchon, S and Guobao W
(2005): “Assessing the Impact of Transport and Venkatesan, R (2005, September): “Charac-
Energy Infrastructure on Poverty Reduction”, teristics of the Indian Markets and Market
Asian Development Bank, Manila. Penetration Strategies,” East Asia Economic
Forum in Seoul in Proceedings Leaps of Asian
Sharma, A (2005): Paper “Understanding Economies and Korea’s Future Direction.
India’s Aggressive and Defensive Stance in
Agricultural Trade Negotiations” in Les Venkatesan, R (2005): “India: E-readiness
Politiques Agricoles Sont-Elles Condamnees Report for States/ UTs 2004,” Department of
Par LaMondialisation? (editor) Pierre Rainelli, Information Technology, Government of
Institut Francais des Relations Internationales, India.
Paris.
16 NCAER ANNUAL REPORT 2005–2006
25. 2005 2006
PUBLIC AFFAIRS
LECTURE AT: Committee Room, NCAER, New Delhi.
ORGANISER: Dr D K Pant
JULY 25, 2005: Annual India Policy Forum
Lecture by Dr John Williamson, Institute of MAY 13, 2005: First Advisory Committee
International Economics, Washington DC, on Meeting of the ACIAR-funded project,
“What Follows the Era of the USA as the “Agricultural Trade Liberalisation and
World’s Growth Engine” Domestic Market Reforms in Indian
CHAIR: Dr Bimal Jalan Agriculture”
AT: India Habitat Centre, New Delhi. AT: Committee Room, NCAER, New Delhi.
ORGANISER: Mr Suman Bery ORGANISER: Dr Rajesh Chadha
CONFERENCES, SEMINARS, JUNE 21, 2005: First Advisory Committee
WORKSHOPS AND SYMPOSIA Meeting of the British High Commission-
funded project, “Liberalising Domestic
APRIL 4, 2005: Workshop on Domestic Agricultural Markets: Gains for India”
Tourism & India’s Tourism Satellite Account AT: Committee Room, NCAER, New Delhi.
AT: India International Centre, New Delhi. ORGANISER: Dr Rajesh Chadha
ORGANISER: Dr Pradeep Srivastava
JULY 8, 2005: Seminar on “Comprehensive
APRIL 28, 2005 AND JULY 27, 2005: Quarterly Study to Assess the Genuine Demand and
Review: State of the Economy Seminar Requirement of SKO”
ON THE EVE OF THE INDIA
POLICY FORUM THE PRIME
MINISTER, DR MANMOHAN
SINGH, INVITED THE
MEMBERS OF THE IPF
ADVISORY AND RESEARCH
PANEL FOR TEA AT HIS
RESIDENCE, NEW DELHI,
JULY 24, 2005
ACTIVITIES 2005–06 17
26. 2005 2006
AT:Committee Room, NCAER, New Delhi. Cross Cultural Programme. The workshop
ORGANISER: Dr D K Pant was inaugurated by Mr Montek Singh
Ahluwalia, Deputy Chairman, Planning
JULY 25–26, 2005: India Policy Forum 2005 Commission.
AT:India Habitat Centre, New Delhi. AT: India International Centre, New Delhi.
ORGANISER: Mr Suman Bery ORGANISER: Dr Shashanka Bhide
AUGUST 9, 2005: Presentation on “The Great OCTOBER 24, 2005: Policy Research
Indian Market” Networking: Macroeconomic Management
AT: PHDCCI, New Delhi. and Government Finance
ORGANISER: Dr R K Shukla AT: Assocham House, New Delhi.
ORGANISER: Dr Kanhaiya Singh
AUGUST 16, 2005:MISH Workshop
AT: Committee Room, NCAER, New Delhi. NOVEMBER 11, 2005: Lecture by Professor
ORGANISER: Dr R K Shukla Kemal Dervis, UNDP Administrator and UN
Under- Secretary General, on “High Debt
AUGUST 18, 2005: India-Bangladesh Trade & Emerging Market Macroeconomics: Turkey,
FTA Brazil and other Experiences”
AT:India International Centre, New Delhi. AT: Somany Hall, ASSOCHAM House, New
ORGANISER: Dr Sanjib Pohit Delhi.
ORGANISER: Dr B K Pradhan, jointly with
SEPTEMBER 28, 2005: Release of India Science ICRIER and UNDP
Report by the Prime Minister
AT: Vigyan Bhavan, New Delhi. DECEMBER 1, 2005: The Sources of China’s
ORGANISER: Dr R K Shukla Economic Growth: An OECD Perspective
AT: Committee Room, NCAER, New Delhi.
OCTOBER 10–11, 2005: The First workshop on ORGANISER: Dr Shashanka Bhide
“Efficiency, Equity and Access in Indian
Infrastructure: Blending Competition and DECEMBER 12–13, 2005: Workshop
Regulation Project”, co-funded by The on “Impact of Globalisation on
European under the EU-India Economic National Firms: The Case of India and
MR KAMAL NATH, MINISTER,
COMMERCE AND INDUSTRY,
PROF JAGDISH BHAGWATI,
COLUMBIA UNIVERSITY,
PROF MARTIN FELDSTEIN,
HARVARD UNIVERSITY AND
NBER, AND MR N.K. SINGH,
FORMER MEMBER,
PLANNING COMMISSION, AT
THE NBER-NCAER
NEEMRANA CONFERENCE,
NEEMRANA, RAJASTHAN,
JANUARY 15–17, 2006
18 NCAER ANNUAL REPORT 2005–2006
27. 2005 2006
China in a Comparative Perspective” American counterparts. An informal and off-
AT: India International Centre, New Delhi. the-record affair allowing free discussions on
ORGANISERS: NCEAR, with Centre de issues related to economic policy and research
Sciences Humaines, CERNA, London School covering a range of topics including macro
of Economics and India International Centre. economy (monetary and fiscal policy),
Co-financed by the European Union under international trade, banking and finance,
the EU-India SPF Programme. privatisation, regulation, economic reforms,
COORDINATION: Dr B K Pradhan employment, poverty and the social sector.
AT: Neemrana Fort Palace Resort in Rajasthan
DECEMBER 12–14, 2005: Roundtable and NCAER, New Delhi.
discussion: “Initiative for Policy Dialogue: ORGANISERS: Dr Anil Kumar Sharma,
Industrial Policy Taskforce” NCAER and Mihir Desai, National Bureau of
AT: Committee Room, NCAER, New Delhi. Economic Research (NBER), Cambridge MA
ORGANISER: Mr Dripto Mukhopadhyay with administrative support of both
organisations.
DECEMBER 16–18, 2005: Conference on “The
State of the Panchayats and the Way Forward” JANUARY 15–17, 2006: Lecture by Professor
AT: Le Meridien Hotel, New Delhi. Richard Thaler on “Behavioural Economics
ORGANISER: NCAER and Ministry of and Public Policy: The Libertarian
Panchayati Raj. Paternalism Approach”
COORDINATION: Ms Puja Vasudeva Dutta AT: Committee Room, NCAER
JANUARY 2, 2006: Workshop on “Savings and JANUARY 16, 2006:Workshop on “Database
Investment Behaviour” by Prof. Richard Development for Karnataka, Uttaranchal and
Thaler, Professor of Behavioural Sciences, Jharkhand”
Graduate School of Business, Cicago AT: Le Meridien Hotel, New Delhi.
AT: Committee Room, NCAER, New Delhi. ORGANISER: Dr Anushree Sinha
ORGANISER: Dr Anil Kumar Sharma
MARCH 2, 2006: Lecture on “Spillovers,
JANUARY 10, 2006: Workshop on Rural Coordination Failure and Consequences of
Infrastructure Fragmentation in Rural India” by Prof.
AT: Bangalore, Institute for Social and Andrew Foster, Brown University, USA.
Economic Change CHAIR: Prof. Kirit S Parikh
ORGANISER: Dr D B Gupta AT: Committee Room, NCAER.
ORGANISER: Dr Hari Nagarajan
JANUARY 15–17, 2006: NBER-NCAER
Seventh Annual Neemrana Conference on the MARCH 10, 2006: Dr Klaus Deininger, World
Indian Economy. A collaborative project Bank, on “Equity and Efficiency Impacts of
between National Bureau of Economic Rural Land Rental Restrictions: Evidence
Research (NBER) and NCAER and funded from India”
mainly by the former bringing together Indian AT: Committee Room, NCAER.
policy makers, researchers, regulators and ORGANISER: Dr Hari Nagarajan
other professionals to interact with leading
ACTIVITIES 2005–06 19
29. 2005 2006
RESEARCH PROGRAMMES*
Programme Sponsor
1. Quarterly Review of the Economy (M/05/020) ANNUAL SUBSCRIBERS
2. India Policy Forum* (G/05/009) STATE BANK OF INDIA, TATA SONS,
CITIGROUP AND HDFC BANK
3. Assessing the Potential for Economic SITRA, FINNISH NATIONAL FUND FOR
Co-operation between India and Finland* RESEARCH AND DEVELOPMENT
(M/05/077)
4. Potential and Constraints on India’s Alcoholic DIAGEO LIMITED
Beverages Industry* (M/05/078)
5. Development of State- level Macro Database BEARING POINT /USAID
in USAID-REFORM States* (M/05/071)
6. India on Development of Indirect tax model BEARING POINT /USAID
Reform Project, USAID (M/05/086)
7. Quarterly reports for the Embassy of Japan, EMBASSY OF JAPAN, NEW DELHI
New Delhi* (M/05/67)
8. Joint Study Group (JSG): Economic co- MINISTRY OF FINANCE, GOVERNMENT
operation between India and Japan (M/05/076) OF INDIA
9. Foreign Direct Investment Environment MINISTRY OF ECONOMY, TRADE AND
in India (M/05/083) INDUSTRY (METI) AND JAPAN EXTERNAL
TRADE ORGANISATION (JETRO),
GOVERNMENT OF JAPAN
10. Impact of Globalisation on National Firms: EUROPEAN UNION (EU)
The Case of India and China in a Comparative
Perspective* (M/05/081)
11. Export Promotion Scheme Replacing Duty DIRECTORATE GENERAL OF FOREIGN
Entitlement Passbook (DEPB) Scheme* TRADE, MINISTRY OF COMMERCE
(I/05/034)
12. Feasibility Report on establishing a MINISTRY OF COMMERCE AND INDUSTRY,
Think Tank in the Sultanate of Oman* GOVERNMENT OF SULTANATE OF OMAN
(M/04/061)
13. Snap Survey of Registered Dealers Under DEPARTMENT OF EXCISE AND TAXATION
CST Act* (I/05/032) (GOVERNMENT OF PUNJAB)
14. Study of Services to Depositors and Small RESERVE BANK OF INDIA
Borrowers in Rural and Semi Urban Areas
(S/05/021)
* An asterisk indicates programme/ project completion as on/ before the financial year ending on March 31, 2006.
ACTIVITIES 2005–06 21
30. 2005 2006
Programme Sponsor
15. Evaluation of Rasoi Ghar* (S/05/016) HINDUSTAN PETROLEUM CORPORATION
LIMITED
16. Tourism Satellite Account* (M/04/048) MINISTRY OF TOURISM AND CULTURE
17. Study of Macroeconomic Impact of High PETROFED
Oil Prices* (M/05/072)
18. Impact Assessment of Jan Kerosene PETROLEUM PLANNING AND ANALYSIS CELL
Pariyojana (JKP) (M/05/056) (PPAC), MINISTRY OF PETROLEUM AND
NATURAL GAS
19. Comprehensive Study to Assess the PETROLEUM PLANNING AND ANALYSIS
Genuine Demand and Requirement of SKO* CELL (PPAC), MINISTRY OF PETROLEUM
(M/05/079) AND NATURAL GAS
20. Economic Assessment of India-EU Compre- MINISTRY OF COMMERCE AND INDUSTRY,
hensive Economic Engagement* (M/05/082) GOVERNMENT OF INDIA
21. Preparation of User-Friendly Document- DELHI DEVELOPMENT AUTHORITY
Master Plan for Delhi 2021 (H/04/018)
22. Economic Assessment of India- MINISTRY OF COMMERCE & INDUSTRY
Chile FTA* (M/05/075)
23. Policy Research Networking to Strengthen ASIAN DEVELOPMENT BANK (ADB) AND
Policy Reforms: Macroeconomic Group* DEPARTMENT OF ECONOMIC AFFAIRS
(M/03/046) (DEA) MINISTRY OF FINANCE, GOVERNMENT
OF INDIA
24. Assessing an Alternative Medium-term Growth CONFEDERATION OF INDIAN INDUSTRIES
Scenario for the Indian Economy* (M/05/066) (CII)
25. Economic Analysis and Forecast of India* HOCHTIEF AIR PORT GMBH, GERMANY AND
(M/05/063) ITS PARTNERS PIRAMAL HOLDINGS LTD.
AND LARSEN AND TOUBRO (L&T) LTD.
26. A Research Assignment to prepare a R&P MANAGEMENT COMMUNICATION
Commentary for Visa International’s white PVT. LTD. AND FUNDED BY VISA
paper entitled Payment Solutions for INTERNATIONAL
Modernising Economies* (M/05/055)
27. Competitiveness of the Beer Industry in TECNOVA GLOBAL LTD. FUNDED BY SAB
Andhra Pradesh* (M/05/053) MILLER
28. Retainer Relationship with Tecnova* TECNOVA GLOBAL LTD.
(M/05/058)
29. Study of Beer Industry in India (M/05/080) SAB-MILLER
30. Towards Assessing the Performance of the DEFENCE RESEARCH AND DEVELOPMENT
Defence Research and Development ORGANISATION (DRDO), MINISTRY OF
Organisation (DRDO) Phase I: Framework of DEFENCE, GOVERNMENT OF INDIA
Analysis (M/05/084)
31. Efficiency, Equity and Access in Indian EU/ECCP
Infrastructure: Blending Competition and
Regulation (I/05/035)
32. Relevance and Impact of Central Scheme of NATIONAL COOPERATIVE DEVELOPMENT
Assistance to Cooperatives for Marketing, CORPORATION Processing, Storage, etc.
22 NCAER ANNUAL REPORT 2005–2006
31. 2005 2006
Programme Sponsor
Programmes in Comparatively Less Developed
States/UTs (I/05/038)
33. Economic Gains of Cargo Movement through INLAND WATERWAYS AUTHORITY OF INDIA
Inland Water Transport Mode in National (MINISTRY OF SHIPPING, GOVERNMENT OF
Waterways No. 1 * (I/05/036) INDIA)
34. E-Readiness Assessment of States and DEPARTMENT OF INFORMATION
Union Territories, 2004–05 (I/05/040) TECHNOLOGY, GOVERNMENT OF INDIA
35. Social Cost-Benefit Analysis of Community NATIONAL INFORMATICS CENTRE, MINISTRY
Information Centres (CICs) in the North- OF COMMUNICATIONS AND INFORMATION
Eastern Region (I/05/039) TECHNOLOGY, GOVERNMENT OF INDIA
36. A Study of State Policies Affecting Competition - THE COMPETITION COMMISSION OF INDIA
Passenger Transport Sector (I/05/037)
37. Centre for Infrastructure and Regulation UNITED NATIONS DEVELOPMENT
(I/01/013) PROGRAMME (UNDP) AND DEPARTMENT OF
ECONOMIC AFFAIRS, MINISTRY OF FINANCE,
GOVERNMENT OF INDIA
38. Telecom-Universal Service Obligations ADMINISTRATOR, UNIVERSAL SERVICE
(Benchmarking of subsidies) (I/02/019) OBLIGATION FUND, DEPARTMENT OF
TELECOMMUNICATIONS, GOVERNMENT
OF INDIA
39. Review of Subsidies Drawn from the ADMINISTRATOR, UNIVERSAL SERVICE
Universal Service Obligation Fund* OBLIGATION FUND, DEPARTMENT OF
(I/05/033) TELECOMMUNICATIONS, GOVERNMENT
OF INDIA
40. Comprehensive Study of Demand for NATIONAL COUNCIL FOR CEMENT AND
Cement* (M/04/049) BUILDING MATERIALS (NCB) AND MINISTRY
OF COMMERCE AND INDUSTRY, NEW DELHI
41. Coordination of Uttar Pradesh Development PLANNING COMMISSION OF INDIA
Report* (I/04/025)
42. State Development Report for Uttaranchal PLANNING COMMISSION OF INDIA
(M/05/059)
43. District-wise Export Potential Survey in MINISTRY OF INDUSTRY, GOVERNMENT
West Bengal (M/05/065) OF WEST BENGAL
44. An Impact Assessment Study of National NATIONAL AGRICULTURAL TECHNOLOGY
Agricultural Technology Project* (M/05/060) PROJECT, INDIAN COUNCIL OF
AGRICULTURAL RESEARCH
45. Liberalising Domestic Agricultural Markets: BRITISH HIGH COMMISSION, NEW DELHI
Gains for India (M/05/069)
46. Agricultural Trade Liberalisation and AUSTRALIAN CENTRE OF INTERNATIONAL
Domestic Market Reforms in Indian AGRICULTURAL RESEARCH (ACIAR),
Agriculture (M/05/060 AUSTRALIAN GOVERNMENT
47. Exports of Value-added Products from the AGRICULTURAL AND PROCESSED FOOD
Agricultural Sector: Impediments and EXPORT DEVELOPMENT AUTHORITY
Strategies for the Future (A/02/005) (APEDA), NEW DELHI
ACTIVITIES 2005–06 23
32. 2005 2006
Programme Sponsor
48. Policy Reforms in the Sugar Sector: MINISTRY OF FOOD AND CONSUMER
Implications for the Gur and Khandsari AFFAIRS, GOVERNMENT OF INDIA,
Industry (A/02/004) NEW DELHI
49. A study of issues originating from New Draft MINISTRY OF COMMERCE AND INDUSTRY,
Framework Agreement on Agriculture GOVERNMENT OF INDIA
(A/05/011)
50. Land Market, Land Assets and Rural DFID-HTS DEVELOPMENT LTD., UK
Development of India (S/04/013)
51. Current Evaluation Study of TPDS DEPARTMENT OF FOOD AND PUBLIC
(S/05/022) DISTRIBUTION, GOVT. OF INDIA
52. Research for Chronic Poverty Research CHRONIC POVERTY RESEARCH CENTRE,
Centre (CPRCI)* (M/05/057) INDIAN INSTITUTE OF PUBLIC
ADMINISTRATION, NEW DELHI
53. Economic Growth and Chronic Poverty CHRONIC POVERTY RESEARCH CENTRE,
(M/05/085) INDIAN INSTITUTE OF PUBLIC
ADMINISTRATION
54. Investigation of the reasons of High Drop-out DEPARTMENT OF SECONDARY AND HIGHER
rates in Secondary and Senior Secondary EDUCATION, MINISTRY OF HUMAN
Stage in India (H/05/025) RESOURCE DEVELOPMENT
55. Maternal and Child Health (H/03/016) NATIONAL INSTITUTES OF HEALTH AND
HUMAN DEVELOPMENT, MARYLAND, USA
56. Parental Education and Child Outcomes NATIONAL INSTITUTES OF HEALTH AND
(H/04/021) HUMAN DEVELOPMENT, MARYLAND, USA
57. Health Environment, Economic Development NATIONAL INSTITUTES OF HEALTH AND
(H/03/022) HUMAN DEVELOPMENT, MARYLAND, USA
58. Impact of HIV/AIDS on Women and Girl Child UNITED NATIONS DEVELOPMENT
and on Industry Sector (H/05/024) PROGRAMME (UNDP)
59. NACO-Socio-economic Impact of HIV/AIDS UNITED NATIONS DEVELOPMENT
in India (H/03/017) PROGRAMME (UNDP)
60. Understanding the Dynamics of Poverty: IIPA/ CPRC
Persistent and the Transient (A/03/010)
61. A Study Using Household Level Data (S/03/009) WORLD BANK
62. Decentralisation and Pro Poor Growth HARVARD UNIVERSITY, USA
in India (S/05/015)
63. Consumer Demand Analysis for India* MCKINSEY GLOBAL INSTITUTE
(S/05/020)
64. National Survey of Income and Expenditure - SELF-SPONSORED
Market Information Survey of Households
(S/05/018)
65. Demand for Cars (S/05/019) MARUTI UDYOG LTD.
66. India Protection Index (S/05/014) MAX NEW YORK LIFE INSURANCE LTD.
67. Indo-Norwegian Programme of Institutional ROYAL NORWEGIAN EMBASSY, NEW DELHI
Co-operation (N001)
68. Safety Nets and Social Protection in India THE WORLD BANK
(H/04/020)
24 NCAER ANNUAL REPORT 2005–2006
33. 2005 2006
GROWTH, TRADE AND ECONOMIC MANAGEMENT*
Economy-wide perspectives are important for sectors in the context of a global economy.
assessing policy choices. NCAER has a What happens if India reduces its trade
tradition of providing assessment of the Indian barriers unilaterally? Or when such trade
economy using macroeconomic models. Such liberalisation takes place within a multilateral
analysis is supplemented by periodic surveys of framework? What are the implications of free
the business sector which track its expectations or regional trade agreements? What are the
on output, prices, employment and implications of climate change in a global
investment. Assessment of policies relating to context? These are the issues that can be
taxes and subsidies, administered prices, examined in a Computable General
exchange rate, capital flows, monetary policy Equilibrium (CGE) modelling framework.
and public spending in a framework that The Council maintains a capability to examine
quantifies the impact of these factors on the the trade policy issues both in the CGE
aggregate output and price is made available framework as well as other approaches of
through commissioned studies, periodic partial equilibrium analysis.
reports and seminars. The Council has also A set of monthly and quarterly reports
resumed studying State-level economies again disseminate the macroeconomic perspectives
after its initial involvement in this area in the from NCAER’s research. MacroTrack, a
1960s. monthly journal providing insights from
The Council has three distinct empirical analysis of issues relating to agriculture,
models of the Indian economy, to address a industry, trade, finance and the overall
range of issues. A short-term macroeconomic economy is now in its eighth year of
model incorporating a Social Accounting publication. Quarterly Review of the Economy, a
Matrix (SAM) and a set of behavioural package of quarterly reports and seminars on
equations such as investment, demand and the economy is in operation for well over a
trade has been used to provide short-term decade. The quarterly reports constitute a
forecasts and policy analysis. A structural comprehensive review of the economy and a
econometric model has been maintained to report on the quarterly survey of business
provide estimates of the key macroeconomic expectations conducted by the Council. The
parameters such as GDP, inflation rate, fiscal “Business Confidence Index” constructed by
balance and external balance over a medium- the Council is based on these quarterly
term horizon. One application of the surveys.
econometric model has been to assess the This analytical capability has been formed
feasibility of sustained high rates of economic through active collaborations with the official
growth. The third type of modelling capability agencies, scholars and universities in India and
that the Council maintains is that of analysing abroad.
resource allocation across the production
* An asterisk indicates programme/ project completion as on/ before the financial year ending on March 31, 2006.
ACTIVITIES 2005–06 25
34. 2005 2006
QUARTERLY REVIEW OF THE ECONOMY INDIA POLICY FORUM* (G/05/009)
(M/05/020) SPONSORS: State Bank of India, Tata Sons,
SPONSOR : Annual subscribers Citigroup and HDFC Bank
This subscription-based service comprises The second India Policy Forum (IPF)
Quarterly Review of the Economy, a quarterly conference was held at India Habitat Centre,
Business Expectations Survey (BES), a monthly New Delhi, on July 25, 2005. Dr John
newsletter, MacroTrack, and quarterly State of Williamson, Senior Fellow, Institute of
the Economy seminars. Quarterly Review of the International Economics, Washington, DC
Economy aims at providing assessments on delivered the second annual IPF lecture on
macro-economic models, leading indicators, “What Follows the Era of the USA as the
and the BES which assesses the economy to World’s Growth Engine?” The inaugural issue
generate a Business Confidence Index (BCI). of the India Policy Forum annual publication,
MacroTrack provides information and analyses India Policy Forum 2004, was published in
on major trends in the economy, industry and January 2005. The second volume was
finance. The State of the Economy seminars published in July 2006.
comprise presentations by the NCAER team PROJECT TEAM: SUMAN BERY, SHASHANKA BHIDE
and commentaries by invited experts. AND KARTIK VENKATRAMAN
Subscribers to Quarterly Review and other
experts also make presentations on specific ASSESSING THE POTENTIAL FOR ECONOMIC
topics related to the Indian economy. The COOPERATION BETWEEN INDIA AND
contents of Quarterly Review are available to FINLAND* (M/05/077)
subscribers both electronically as well as in SPONSOR: SITRA, Finnish National Fund for
printed form. Research and Development
PROJECT TEAM: DEVENDRA KUMAR PANT, RAJESH In this paper, we look at the potential
CHADHA, ANIL SHARMA, ANUSHREE SINHA, SANJIB opportunities for business co-operation
POHIT, S K N NAIR, KANHAIYA SINGH, SUNIL K SINHA, between India and Finland. We examine the
SAURABH BANDYOPADHYAY, KHURSHEED ANWAR pattern of trade between the two countries,
SIDDIQUI, DEVENDER PRATAP, SAMBASIVA RAO, RACHNA examine the growth potential in India and
SHARMA AND ANJALI TANDON provide an assessment of the potential for
EXPERT COMMENTATORS AT QUARTERLY linkages between the two economies.
REVIEW SEMINARS IN 2005–06: PROJECT TEAM: SHASHANKA BHIDE, DRIPTO
PROF DEEPAK LAL, UNIVERSITY OF CALIFORNIA, LOS MUKHOPADHYAY, DIVJOT SINGH, DIVYA KRISHNAN AND
ANGELES (ULCA) PAWAN KUMAR
MR K L DATTA, CENTRE FOR DEVELOPMENT AND HUMAN
RIGHTS POTENTIAL AND CONSTRAINTS ON INDIA’S
DR RAJIV KUMAR, CONFEDERATION OF INDIAN INDUSTRY ALCOHOLIC BEVERAGES INDUSTRY*
DR PRONAB SEN, PLANNING COMMISSION (M/05/078)
DR SAUMITRA CHAUDHURI, ICRA LIMITED SPONSOR: Diageo Limited
SPECIAL PRESENTATIONS This study has examined a number of
DR M GOVINDA RAO, NATIONAL INSTITUTE OF PUBLIC issues relating to the spirits segment of
FINANCE AND POLICY alcoholic beverages industry. One of the
MR P N GUPTA, STEEL AUTHORITY OF INDIA LIMITED important distortions affecting this industry is
DR NAGESH KUMAR, RIS the multiplicity of taxes applied to this sector.
26 NCAER ANNUAL REPORT 2005–2006
35. 2005 2006
The study aims to provide an assessment of the DEVELOPMENT OF INDIRECT TAX MODEL IN
variations in tax rates applied to this sector in USAID- REFORM STATES (M/05/086)
different states of the country. The study also SPONSOR: Bearing Point / USAID
examines the competitiveness of the domestic The tax model for the three USAID-
industry in the context of import duties REFORM States – Karnataka, Jharkhand and
applied to this sector. Uttaranchal – should provide a detailed
The study has pointed to the wide framework for projecting indirect taxes by year
discrepancy in the estimated quantity of and analyse the revenue impacts of proposed
production and consumption of alcohol. The indirect tax policies by creating or changing tax
high taxes lead to evasion, especially when law parameters to compute the resulting tax
enforcement mechanism is weak. Putting liability. The model should be flexible enough
together data from various sources, the study to allow the user to specify alternate tax
places the estimates of India Made Foreign policies for most indirect taxes and sufficiently
Liquor (IMFL) and Country Liquor detailed to provide estimates of VAT.
production/consumption at 7677.2 million PROJECT TEAM: ANUSHREE SINHA, SHASHANKA
litres during 2005, which means actual BHIDE, SAURABH BANDYOPADHYAY, PURNA CHANDRA
production and consumption of alcohol, is PARIDA, POONAM MUNJAL, PRAVEEN SACHDEVA, RAKESH
around 3.5 times the level indicated by the KUMAR SRIVASTAVA, SUDESH BALA AND SADHANA SINGH
data on State Excise Revenue Statistics.
Clearly, this has serious implications from the QUARTERLY REPORTS FOR THE EMBASSY OF
revenue angle. While high rates of taxes are JAPAN, NEW DELHI* (M/05/67)
justified as a means to raise revenue and to SPONSOR: Embassy of Japan, New Delhi
reduce consumption of alcohol, both objectives Developed four quarterly reports for the
seem to be undermined. Embassy of Japan. Topics covered: “Value-
PROJECT TEAM: SHASHANKA BHIDE, J S BEDI AND Added Tax in India – June 2005”; “Funding
L M PANDEY Infrastructure in India” – September 2005”;
“Supply and Demand of Petroleum Products
DEVELOPMENT OF STATE-LEVEL MACRO in India – December 2005”; “India-Singapore
DATABASE IN THE THREE USAID-REFORM CECA – March 2006”.
STATES (M/05/071) PROJECT TEAM: RAJESH CHADHA, DEVENDRA KUMAR
SPONSOR: Bearing Point /USAID PANT, ANJALI TANDON AND ABHISHEK AKHOURI
Proposed a framework for developing
macro-economic databases for the three JOINT STUDY GROUP (JSG): ECONOMIC
USAID-REFORM States – Karnataka, COOPERATION BETWEEN INDIA AND JAPAN
Jharkhand and Uttaranchal. The database was (M/05/076)
developed in SQL Server 2000 and included SPONSOR: Ministry of Finance, Government
both industry and fiscal data sets. The data are of India
comprehensive enough for the Fiscal Policy Developed two chapters of the JSG Report on
Analysis Cells (FPACs) in each of these States “Trade in Goods” and “Trade in Services”.
to formulate comprehensive overviews on their PROJECT TEAM: SUMAN BERY, RAJESH CHADHA,
respective macro economic conditions. DEVENDER PRATAP AND ANJALI TANDON
PROJECT TEAM: SHASHANKA BHIDE, ANUSHREE
SINHA, SAURABH BANDYOPADHYAY, PURNA CHANDRA FOREIGN DIRECT INVESTMENT (FDI)
PARIDA, POONAM MUNJAL, PRAVEEN SACHDEVA AND ENVIRONMENT IN INDIA (M/05/083)
RAKESH KUMAR SRIVASTAVA SPONSOR: Ministry of Economy, Trade and
Industry (METI) and Japan External Trade
ACTIVITIES 2005–06 27
36. 2005 2006
Organisation ( JETRO), Government of Japan cumulative indirect taxes and hence forms the
Document FDI-related institutions and basis for the alternative scheme proposed in
procedures at Central as well as State level this study.
(major States to be considered). Document PROJECT TEAM: R VENKATESAN, M R SALUJA, RUPA
Indian investment laws and policies covering MALIK, POONAM MUNJAL AND REETA KRISHNA
general investment, capital structures,
performance requirements (including foreign FEASIBILITY REPORT ON ESTABLISHING A
exchange balancing) and TRIMS, accounting THINK TANK IN THE SULTANATE OF OMAN*
and tax systems, royalty, land ownership, (M/04/061)
labour, immigration, and disseminate relevant SPONSOR: Ministry of Commerce and
judicial systems and legislations regulating Industry, Government of Sultanate of Oman.
foreign exchange inflow, etc. Suggests the vision, mission and activities
PROJECT TEAM: RAJESH CHADHA, GEETHANJALI of the proposed think-tank based on
NATARAJ, ABHISHEK KUMAR, PRIYA NATARAJAN AND discussions with relevant authorities; evolves a
SHEFALI RAI proper positioning of the think-tank in the
overall economic development framework in
IMPACT OF GLOBALISATION ON NATIONAL Oman; identifies the type of organisation and
FIRMS: THE CASE OF INDIA AND CHINA IN A a suitable structure for the proposed think-
COMPARATIVE PERSPECTIVE* (M/05/081) tank; suggests the composition of the research
SPONSOR: European Union (EU) team, qualifications and experience of its
A two-day international workshop on members, their functioning including the
“Impact of Globalization on National Firms: linkages with various ministries in Oman, and,
The Case of India and China in a finally, indicates the funds that would be
Comparative Perspective” in collaboration required for establishing such a think-tank.
with CSH, LSE and IIC was organised and a Unlike reports by other international agencies
paper on Indian industry was developed. The which are generally based on an assessment at
findings of the paper was presented in the a particular moment in time, NCAER’s report
workshop. A paper titled “Statistical analysis was prepared after prolonged discussions with
of the evolution of Indian Industry in the post- various stakeholders. NCAER proposes that
liberalisation era” was prepared. the most appropriate initial institutional
PROJECT TEAM: BASANTA K PRADHAN, SHALABH K response would be to create a policy-planning
SINGH AND BIJAY CHOUHAN unit reporting to the Minister which could
form the nucleus of an independent research
EXPORT PROMOTION SCHEME REPLACING organisation.
DUTY ENTITLEMENT PASSBOOK (DEPB) PROJECT TEAM: R VENKATESAN, RAJESH SHUKLA
SCHEME* (I/05/034) AND RUPA MALIK
SPONSOR: Directorate General of Foreign PROJECT ADVISOR AND FINAL RECOMMENDA-
Trade, Ministry of Commerce TIONS: SUMAN BERY
Proposes a new, WTO complaint scheme PROJECT INITIATION: PRADEEP SRIVASTAVA
for exporters. The DEPB has been
countervailed chiefly because there is no nexus SNAP SURVEY OF REGISTERED DEALERS
between imported inputs and exports while UNDER CST ACT* (I/05/032)
import duties are cited for incentives/ SPONSOR: Department of Excise and
reimbursement. Annex II of Agreement on Taxation, Government of Punjab
Subsidies and Countervailing Measure Estimates sales tax evasion at the macro-
(ASCM) allows for remission of prior stage level in Punjab, finds the linkages between
28 NCAER ANNUAL REPORT 2005–2006