Annual Report2005–2006
NCAER’s Golden Jubilee:1956–2006The NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH (NCAER) was formallyinaugurated by the t...
Annual Report2005–2006NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH
August 2006Published byRajesh ChadhaSenior Counsellor [Operations] and SecretaryNational Council of Applied Economic Resea...
ContentsLIST OF ABBREVIATIONS                                                      ivTHE INSTITUTIONTHE GOVERNING BODY    ...
Abbreviations/Acronyms     ACIAR                  Australian Centre of International Agricultural Research     ADB        ...
2005   2006FDI      Foreign Direct InvestmentFICCI    Federation of Indian Chambers of Commerce and IndustryFPAC     Fisca...
2005   2006       SBI                    State Bank of India       SDP                    State Domestic Product       SKO...
The InstitutionTHE GOVERNING BODY*The Governing Body met four times during 2005–06: on April 11, July 20, November 22, 200...
2005   2006       FOUNDER MEMBERS       J.R.D. Tata                                 John Mathai       N.R. Pillai         ...
2005    200638.   Standard Chartered Bank                   42. Telecom Regulatory Authority of India39.   Tata Consultanc...
THE FIRST PRIME MINISTEROF INDIA, PANDITJAWAHARLAL NEHRU,LAYING THE FOUNDATIONSTONE OF THE COUNCILSBUILDING IN 1959       ...
Director-General’s ReportTHE GOLDEN JUBILEE                                 pattern has endured through the five2006–07 is...
2005   2006       these features came to be. He points out that       symbolises the cordial, professional       the Counc...
2005    2006testament to the energy and foresight of a          Office (CSO). The NCAER’s methodologydiverse group of lead...
2005   2006           Our own partnerships, international and       position of Finance Officer till late in the year,    ...
2005   2006of the Economy (Business Expectation Survey,    site to provide a spectrum of data and views onMacroTrack, the ...
THE PRESIDENT, DR BIMALJALAN, DELIVERING ASPEECH ON THE OCCASIONOF THE NCAER GOLDENJUBILEE CELEBRATIONEVENT AT NCAER, NEWD...
Activities 2005-06PUBLICATIONS*BOOKS                                                             these items – by income a...
2005   2006                                            regulated sectors. In    various States/Union                      ...
2005    2006• M. Govinda Rao and R. Kavita Rao on “Tax Policy and   provides a forum for   Tax Reform”                    ...
2005   2006                                    A computerised               PARTICIPATING INSTITUTIONS                    ...
2005    2006Buragohain, T (2005, October): “Level of        Structural Adjustment Programme (SAP) inAwareness of RTI/STI a...
2005   2006       C. Sathyamala, Institute of Human                  Singh, K. and Bery, S.K (2005): “India’s       Develo...
2005   2006PUBLIC AFFAIRSLECTURE                                       AT:   Committee Room, NCAER, New Delhi.            ...
2005   2006       AT:Committee Room, NCAER, New Delhi.           Cross Cultural Programme. The workshop       ORGANISER: D...
2005    2006China in a Comparative Perspective”             American counterparts. An informal and off-AT: India Internati...
2005    2006RESEARCH PROGRAMMES*       Programme                                                       Sponsor 1.    Quart...
2005   2006              Programme                                     Sponsor       15.    Evaluation of Rasoi Ghar* (S/0...
2005    2006      Programme                                         Sponsor      Programmes in Comparatively Less Develope...
2005   2006              Programme                                       Sponsor       48.    Policy Reforms in the Sugar ...
2005    2006GROWTH, TRADE AND ECONOMIC MANAGEMENT*Economy-wide perspectives are important for                       sector...
2005   2006       QUARTERLY REVIEW OF THE ECONOMY                     INDIA POLICY FORUM* (G/05/009)       (M/05/020)     ...
2005    2006The study aims to provide an assessment of the      DEVELOPMENT OF INDIRECT TAX MODEL INvariations in tax rate...
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Annualreport 2005

  1. 1. Annual Report2005–2006
  2. 2. NCAER’s Golden Jubilee:1956–2006The NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH (NCAER) was formallyinaugurated by the then President of India, Rajendra Prasad, on December 18, 1956. Its creationformed part of a broader effort to strengthen India’s institutional competence in economics. TheCouncil’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 FordFoundation 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 Asiaand Far East as its first Secretary-General. The bulk of the Council’s revenue comes from studiesdone 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 partnershipwith other organisations and individuals, located both in India and abroad. Today, NCAER has links with major policy research institutions and universities outsideIndia including the National Bureau of Economic Research, Cambridge (Mass.), USA; theBrookings 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’seconomic 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. Hewas earlier with the World Bank in Washington D.C. where he held a number of positionsconcerned with economic research and analysis. Between 1992 and 1994, Mr. Bery was based inMumbai 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 AppliedEconomic Research in Post-Independence India” and a special volume on this has beencommissioned.
  3. 3. Annual Report2005–2006NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH
  4. 4. August 2006Published byRajesh ChadhaSenior Counsellor [Operations] and SecretaryNational Council of Applied Economic ResearchParisila Bhawan, 11 Indraprastha Estate, New Delhi 110 002T +91 11 2337 9861–63 F +91 11 2337 0164E infor@ncaer.org W www.ncaer.org
  5. 5. ContentsLIST OF ABBREVIATIONS ivTHE INSTITUTIONTHE GOVERNING BODY 1FOUNDER MEMBERS 2THE GENERAL BODY 2DIRECTOR-GENERAL’S REPORT 5ACTIVITIES 2005–06PUBLICATIONS 11PUBLIC AFFAIRS 17RESEARCH PROGRAMMES 21GROWTH, TRADE AND ECONOMIC MANAGEMENT 25INVESTMENT CLIMATE, PHYSICAL AND ECONOMIC INFRASTRUCTURE 33AGRICULTURE, RURAL DEVELOPMENT AND RESOURCE MANAGEMENT 37HOUSEHOLD BEHAVIOUR, POVERTY, HUMAN DEVELOPMENT, INFORMALITY AND GENDER 41FINANCES 2005–06ANNUAL ACCOUNTS 2005–06 47APPENDIX I: ACTIVITIES OF SENIOR STAFF 67APPENDIX II: RESOURCESSTAFF COMPOSITION 75LIBRARY 79COMPUTER CENTRE 81 CONTENTS III
  6. 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 UnionIV NCAER ANNUAL REPORT 2005–2006
  7. 7. 2005 2006FDI Foreign Direct InvestmentFICCI Federation of Indian Chambers of Commerce and IndustryFPAC Fiscal Policy Analysis CellFTA Free Trade AgreementGDP Gross Domestic ProductHDFC Housing Development Finance CorporationHDI Human Development IndexHPCL Hindustan Petroleum Corporation LimitedIAMR Institute of Applied Manpower ResearchIASSI Indian Association of Social Sciences InstitutionsICAI Institute of Chartered Accountants of IndiaICRIER Indian Council for Research on International Economic RelationsIEG Institute of Economic GrowthIMFL India-Made Foreign LiquorINSA Indian National Science Academy (New Delhi)IOT Input-Output TableIPF India Policy ForumIRR Incremental Rate of ReturnIWT Inland Waterways TransportationJETRO Japan External Trade OrganisationJKP Jan Kerosene PariyojanaJSG Joint Study GroupLPG Liquefied Petroleum GasMETI Ministry of Economy, Trade and Industry (Govt. of Japan)MISH Market Information Survey of HouseholdsNACO National AIDS Control OrganisationNARS National Agricultural Research SystemNAS National Accounts StatisticsNATP National Agricultural Technology ProjectNBER National Bureau of Economic Research (Cambridge, MA, USA)NIC National Informatics CentreNIPFP National Institute of Public Finance and Policy (New Delhi)NORAD Norwegian Agency for Development CooperationNSHIE National Survey of Household Income and ExpenditureNSSO National Sample Survey OrganisationO&M Organisation & ManagementOECD Organisation for Economic Cooperation and DevelopmentORS Oral Rehydration SolutionPDS Public Distribution SystemPER Poverty and Economic PolicyPHDCCI Punjab, Haryana and Delhi Chamber of Commerce and IndustryPPAC Petroleum Planning and Analysis CellREDS Rural Economic and Demographic SurveyRITES Rail India Technical and Economic Services Ltd.SAM Social Accounting MatrixSANEI South Asia Network of Economic Research Institutes ABBREVIATIONS/ACRONYMS V
  8. 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. 9. The InstitutionTHE 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.PresidentBimal JalanVice PresidentM.S. Verma Ex-Chairman, Telecom Regulatory Authority of India and State Bank of IndiaSecretaryRajesh Chadha Senior Fellow and Senior Counsellor (Operations) and SecretaryMembersShankar N. Acharya Honorary Professor and Member, Board of Governors, Indian Council for Research on International Economic Relations (ICRIER), New DelhiIsher J. Ahluwalia Chairperson, Board of Governors, Indian Council for Research on International Economic Relations (ICRIER), New DelhiMukesh D. Ambani Chairperson, Reliance Industries Ltd., MumbaiSuman K. Bery Director-General, NCAER, New Delhi (ex-officio)Surjit S. Bhalla Managing Director, O(x)us Investments Pvt. Ltd., New DelhiTarun Das Chief Mentor, Confederation of Indian Industry (CII), New DelhiYogesh C. Deveshwar Chairperson, ITC Ltd., KolkataAshok Jha Secretary, Economic Affairs, Ministry of Finance, Government of India (ex-officio)Ashok S. Ganguly Chairperson, ICICI One-Source Ltd., MumbaiK.V. Kamath Managing Director and CEO, ICICI Bank Ltd., MumbaiNaina Lal Kidwai Chief Executive Officer, Hongkong and Shanghai Banking Corporation, MumbaiAnand G. Mahindra Managing Director and Vice-Chairperson, Mahindra & Mahindra Ltd., MumbaiR.A. Mashelkar Director-General, Council for Scientific and Industrial Research (CSIR), New DelhiKiran Mazumdar-Shaw Chairperson & Managing Director, Biocon India Ltd., BangaloreRakesh Mohan Deputy Governor, Reserve Bank of IndiaRohini Nayyar Ex-Senior Consultant, Planning Commission, New DelhiDeepak S. Parekh Chairperson, Housing Development Finance Corporation Ltd. (HDFC), MumbaiRajendra S. Pawar Chairperson, National Institute of Information Technology (NIIT), New Delhi* As on August 1, 2006. THE INSTITUTION 1
  10. 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. 11. 2005 200638. Standard Chartered Bank 42. Telecom Regulatory Authority of India39. Tata Consultancy Services 43. Valsad District Co-operative Milk40. Tata Iron and Steel Company Ltd. Production Union41. 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. DoshiNumber of Members March 31, 2005 March 31, 2006Corporate members paying Rs. 5,000/- per annum 48 44Ordinary members paying Rs. 500/- per annum 13 10Patron members paying a one-time subscription of Rs. 1 lakh 4 4Special members paying a one-time subscription of Rs. 1 lakh 1 1Total 66 59Total fees received Rs. 2,40, 000 Rs. 2, 25, 000 THE INSTITUTION 3
  12. 12. THE FIRST PRIME MINISTEROF INDIA, PANDITJAWAHARLAL NEHRU,LAYING THE FOUNDATIONSTONE OF THE COUNCILSBUILDING IN 1959 THE NCAER’S FOUNDATION STONE IN ITS GOLDEN JUBILEE CELEBRATION YEAR
  13. 13. Director-General’s ReportTHE GOLDEN JUBILEE pattern has endured through the five2006–07 is being commemorated as NCAER’s intervening decades; even today, 50 years later,Golden Jubilee. Preparing for these revenue from projects (and seminars) accountscelebrations has stimulated a valuable review of for some 90 per cent of our total revenue ofthe 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 theBody and among the senior staff of what has vision of its founders; we continue to believeendured, what has changed, and how to keep that diversified support is the best guarantee ofthe Council relevant to serve India in the both accountability and independence. Yetcoming decades. experience has shown that high reliance on I am happy to say that the tradition of wide project revenue alone creates difficulties insupport from government, industry, and building and retaining capacity. Accordingly,academia for NCAER continues, as a glance at since the early 1990s, my predecessors and Ithe composition of the current Governing have aimed to supplement project revenueBody 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 sustainingprovided by the President, Dr. Bimal Jalan, the capacity and building scale in the Council’sVice-President, Mr. M.S. Verma, and others in activities.the Governing Body in planning and Under the McKinsey-led review of theimplementing 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 workDirector-General of the Council at this to be endowment-supported. In reviewing pastimportant milestone. It coincides with the Annual Reports, I find that this was also astart of my second term, and I am grateful to target enunciated in 1996 by my immediatethe members of the Governing Body for their predecessor, Dr. Rakesh Mohan. This remainscontinued trust in me. a benchmark toward which we continue to While the Council was provided a work, both in raising our endowment andhandsome initial grant of both money and improving its management. Accordingly, asland by the Ford Foundation and the part of the Golden Jubilee effort, we are takingGovernment, there was concern from the a fresh look at our investment policies, as peroutset to establish and to preserve the regulations applicable to non-profitintellectual independence of the Council, as organisations.well as to ensure the practical orientation of Two other long-standing characteristics ofthe 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. 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. 15. 2005 2006testament to the energy and foresight of a Office (CSO). The NCAER’s methodologydiverse group of leaders in a young nation who and sample design for capturing domestichad a belief in the importance of empirical travel was hailed by the World Tourismanalysis as a basis for sound decisions in both Organisation as a model for other developingthe public and private spheres. It was a vision countries.born of the confidence that India was destined NCAER was requested by the Ministry ofto be a serious and important nation in the Petroleum and Natural Gas to undertake aworld, which deserved institutions of this major study of household distribution ofstature. It is fortunate that the Council’s Superior Kerosene Oil (SKO). SKO is anGolden Jubilee is taking place at a moment important household fuel used for bothwhen India’s horizons seem limitless and when lighting and heating. It is provided throughconfidence is once again widespread. Our the public distribution system (PDS) at belowGolden Jubilee celebrations are accordingly an market prices by the Union Government, withopportunity to salute the vision of our the ultimate responsibility for distribution andpredecessors, to acknowledge the continuing pricing resting with State Governments. Thevalidity of the model they created, and to NCAER’s study provided estimates of theupgrade our capacity to be of service to the reach of the PDS, State taxation of SKO, thenation in the exciting times that lie ahead. differences among States in organising the distribution of kerosene, and of the apparentAcademic Highlights diversion of household kerosene to other uses.The Council’s capacity for large-scale data Innovative and sensitive field work wascollection was demonstrated in many contexts also required in our project for the Nationalin 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 partnercommissioned by the India National Science the UNDP, to measure the socioeconomicAcademy (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 hadBody Member, Dr. R.A. Mashelkar, current to grapple with difficult issues ofPresident of INSA, for providing this visibility confidentiality and sensitivity to gather thisto 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 theparticularly on the declining interest in science NCAER in an appraisal of its field-work andstudies as students enter higher classes. These data dissemination activities, with a view toresults were based on a large survey designed making them more robust and transparent. Weby 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 rangescience surveys. of other fronts as well. We were approached by Earlier, work to capture data on domestic the Ministry of Commerce and Industry of thetourism led to a further assignment from the Sultanate of Oman for advice on setting up aMinistry 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 workcoordinated by NCAER with advisory input was anticipated and provided for in theby a broad range of statistical agencies original memorandum of association of theincluding the RBI and the Central Statistical NCAER! DIRECTOR-GENERAL’S REPORT 7
  16. 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. 17. 2005 2006of the Economy (Business Expectation Survey, site to provide a spectrum of data and views onMacroTrack, the Quarterly Review of the the Indian economy. In the earlier part of thisEconomy report itself ); Artha Suchi; Margin; Report I focused on the continuity in ourthe 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 coredesigned to provide an arena for empirical purpose and mandate: to bring data anddebate on policy issues facing the Indian analysis to bear, in a neutral and professionaleconomy. This bouquet of print offerings will way, to the challenge of India’s economicbe complemented with our redesigned web- development as it evolves. DIRECTOR-GENERAL’S REPORT 9
  18. 18. THE PRESIDENT, DR BIMALJALAN, DELIVERING ASPEECH ON THE OCCASIONOF THE NCAER GOLDENJUBILEE CELEBRATIONEVENT AT NCAER, NEWDELHI, MARCH 30, 2006GOVERNING BODYMEMBERS AT A GET-TOGETHER WITH NCAERSTAFF MEMBERS ON THENCAER LAWNS ON THEOCCASION OF THE NCAERGOLDEN JUBILEECELEBRATION EVENT ATNCAER, NEW DELHI, MARCH30, 2006
  19. 19. Activities 2005-06PUBLICATIONS*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 MarketNCAER 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 differentannual all-India NCAER survey of 300,000 durables, for different income/occupationhouseholds over 515 cities and 400 districts. groups, and between rural and urban areas. ItWhile the focus of the MISH surveys has captures the prices paid for both new as well astraditionally 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 CHARUhousehold income. JAIN WITH ASSISTANCE FROM SUNIL JAIN OF BUSINESS This is a comprehensive report on what the STANDARDIndian consumer is buying and how thepattern is projected to change by the end of the India’s Telecommunications Industry:decade by examining the interaction between History, Analysis, Diagnosisrising 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’strends for 20 categories of durable goods and Centre for Infrastructure and Regulation toseven of consumer goods from actual provide an independent account of theconsumption in 1995–96 to projections for political economy of reforms in the telecom2009–10 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. 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. 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 theSUBSCRIPTION PRODUCTS Council. Contributor HighlightsQuarterly 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). “Theand 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 intoobjective 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’sExpectations Survey. An integral part of heart.” 38 (1), Oct.-Dec.Quarterly Review is its quarterly “State of the • Manas Chakrvarty (2005). “Global liquidity andEconomy” seminars organised at NCAER, emerging markets.” 37 (3), Apr.-June.bringing together policy makers, industry • Mehta, Pradeep S. and Pranav Kumar (2005). “Theleaders 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) pensionsRS 500/ US $ 100) in China.” 38 (1), Oct.-Dec.VOLUME 37, NUMBER 3, 4 AND VOLUME 38, NUMBER 1, 2EDITOR: 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, 2findings in broad areas of applied economics, EDITOR: N J SEBASTIAN ACTIVITIES 2005–06 13
  22. 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. 23. 2005 2006Buragohain, T (2005, October): “Level of Structural Adjustment Programme (SAP) inAwareness 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 internationalconference volume titled Engendering Health Pohit, S (2005, December): “Mitigatingand 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 EEUand FTAA”, Global Economy Journal, 5(4), Pohit, S (2005, July): “Trade FacilitationBerkeley Electronic Press. Problems & Informalisation of Trade: Lesson from India-Bangladesh Trade”, proceedings ofChadha, R (2005, Oct-Dec): “Sectoral the International Seminar on Indo-BangladeshInitiatives: A Paradoxical Component of Border Trade: Status & Prospects, North EasternNAMA!”, Trading Up, 1(3), Centre for Trade Hill University, Shillong.and Development, OXFAM GB, New Delhi. Pohit, S (2006, January): “WTO AgreementDubey, A, Palmer-Jones, Richard and Sen, K on Agriculture, Liberalisation in Select(2006, March): “Surplus Labour, Social Struc- Countries, and Implications for South Asia: Ature and Rural to Urban Migration: Evidence CGE Modelling Analysis,” proceedings of thefrom 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 HouseholdStatus: a Natural Experiment using Indian Welfare and Poverty in India,” MPIAMicro Data”, Journal of Development Studies, Working Paper 2006–01, Poverty andVol. 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 ofUnder-development?”, Economic and Political Shariff, A and Razzak, A (2006): “CommunalWeekly, pp. 2321–29. Relations and Social Integration in India,” Social Development Report, Oxford UniversityKaur, R (2005, Oct-Dec): “Indian Punjab: Press.Social Regulation of Rice Production,” SouthAsian Journal, Vol. 10, pp. 94–101. Shariff, A (2006): “Some Thoughts on Nature and Persistence of Poverty in India,” inKumar, 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 Internationaland Area Studies, Vol. 12, No. 2, pp. 93–113. Shariff, A and Mondal, S.K (2006): “User Fee in Public Health Care InstitutionsMondal, 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. 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. 25. 2005 2006PUBLIC AFFAIRSLECTURE AT: Committee Room, NCAER, New Delhi. ORGANISER: Dr D K PantJULY 25, 2005: Annual India Policy ForumLecture by Dr John Williamson, Institute of MAY 13, 2005: First Advisory CommitteeInternational Economics, Washington DC, on Meeting of the ACIAR-funded project,“What Follows the Era of the USA as the “Agricultural Trade Liberalisation andWorld’s Growth Engine” Domestic Market Reforms in IndianCHAIR: Dr Bimal Jalan Agriculture”AT: India Habitat Centre, New Delhi. AT: Committee Room, NCAER, New Delhi.ORGANISER: Mr Suman Bery ORGANISER: Dr Rajesh ChadhaCONFERENCES, SEMINARS, JUNE 21, 2005: First Advisory CommitteeWORKSHOPS AND SYMPOSIA Meeting of the British High Commission- funded project, “Liberalising DomesticAPRIL 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 ChadhaORGANISER: Dr Pradeep Srivastava JULY 8, 2005: Seminar on “ComprehensiveAPRIL 28, 2005 AND JULY 27, 2005: Quarterly Study to Assess the Genuine Demand andReview: 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. 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. 27. 2005 2006China in a Comparative Perspective” American counterparts. An informal and off-AT: India International Centre, New Delhi. the-record affair allowing free discussions onORGANISERS: NCEAR, with Centre de issues related to economic policy and researchSciences Humaines, CERNA, London School covering a range of topics including macroof 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 RajasthanDECEMBER 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 ofAT: Committee Room, NCAER, New Delhi. Economic Research (NBER), Cambridge MAORGANISER: Mr Dripto Mukhopadhyay with administrative support of both organisations.DECEMBER 16–18, 2005: Conference on “TheState of the Panchayats and the Way Forward” JANUARY 15–17, 2006: Lecture by ProfessorAT: Le Meridien Hotel, New Delhi. Richard Thaler on “Behavioural EconomicsORGANISER: NCAER and Ministry of and Public Policy: The LibertarianPanchayati Raj. Paternalism Approach”COORDINATION: Ms Puja Vasudeva Dutta AT: Committee Room, NCAERJANUARY 2, 2006: Workshop on “Savings and JANUARY 16, 2006:Workshop on “DatabaseInvestment Behaviour” by Prof. Richard Development for Karnataka, Uttaranchal andThaler, 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 SinhaORGANISER: Dr Anil Kumar Sharma MARCH 2, 2006: Lecture on “Spillovers,JANUARY 10, 2006: Workshop on Rural Coordination Failure and Consequences ofInfrastructure Fragmentation in Rural India” by Prof.AT: Bangalore, Institute for Social and Andrew Foster, Brown University, USA.Economic Change CHAIR: Prof. Kirit S ParikhORGANISER: Dr D B Gupta AT: Committee Room, NCAER. ORGANISER: Dr Hari NagarajanJANUARY 15–17, 2006: NBER-NCAERSeventh Annual Neemrana Conference on the MARCH 10, 2006: Dr Klaus Deininger, WorldIndian Economy. A collaborative project Bank, on “Equity and Efficiency Impacts ofbetween National Bureau of Economic Rural Land Rental Restrictions: EvidenceResearch (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 Nagarajanother professionals to interact with leading ACTIVITIES 2005–06 19
  28. 28. 2005 2006RESEARCH 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 JAPAN10. 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
  29. 29. 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
  30. 30. 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 INDIA35. 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 INDIA36. 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 INDIA38. Telecom-Universal Service Obligations ADMINISTRATOR, UNIVERSAL SERVICE (Benchmarking of subsidies) (I/02/019) OBLIGATION FUND, DEPARTMENT OF TELECOMMUNICATIONS, GOVERNMENT OF INDIA39. Review of Subsidies Drawn from the ADMINISTRATOR, UNIVERSAL SERVICE Universal Service Obligation Fund* OBLIGATION FUND, DEPARTMENT OF (I/05/033) TELECOMMUNICATIONS, GOVERNMENT OF INDIA40. Comprehensive Study of Demand for NATIONAL COUNCIL FOR CEMENT AND Cement* (M/04/049) BUILDING MATERIALS (NCB) AND MINISTRY OF COMMERCE AND INDUSTRY, NEW DELHI41. 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 BENGAL44. An Impact Assessment Study of National NATIONAL AGRICULTURAL TECHNOLOGY Agricultural Technology Project* (M/05/060) PROJECT, INDIAN COUNCIL OF AGRICULTURAL RESEARCH45. 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 GOVERNMENT47. 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
  31. 31. 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
  32. 32. 2005 2006GROWTH, 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 tradetradition of providing assessment of the Indian barriers unilaterally? Or when such tradeeconomy using macroeconomic models. Such liberalisation takes place within a multilateralanalysis is supplemented by periodic surveys of framework? What are the implications of freethe business sector which track its expectations or regional trade agreements? What are theon output, prices, employment and implications of climate change in a globalinvestment. Assessment of policies relating to context? These are the issues that can betaxes and subsidies, administered prices, examined in a Computable Generalexchange rate, capital flows, monetary policy Equilibrium (CGE) modelling framework.and public spending in a framework that The Council maintains a capability to examinequantifies the impact of these factors on the the trade policy issues both in the CGEaggregate output and price is made available framework as well as other approaches ofthrough commissioned studies, periodic partial equilibrium analysis.reports and seminars. The Council has also A set of monthly and quarterly reportsresumed studying State-level economies again disseminate the macroeconomic perspectivesafter its initial involvement in this area in the from NCAER’s research. MacroTrack, a1960s. 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 overallrange of issues. A short-term macroeconomic economy is now in its eighth year ofmodel incorporating a Social Accounting publication. Quarterly Review of the Economy, aMatrix (SAM) and a set of behavioural package of quarterly reports and seminars onequations such as investment, demand and the economy is in operation for well over atrade has been used to provide short-term decade. The quarterly reports constitute aforecasts and policy analysis. A structural comprehensive review of the economy and aeconometric model has been maintained to report on the quarterly survey of businessprovide estimates of the key macroeconomic expectations conducted by the Council. Theparameters such as GDP, inflation rate, fiscal “Business Confidence Index” constructed bybalance and external balance over a medium- the Council is based on these quarterlyterm horizon. One application of the surveys.econometric model has been to assess the This analytical capability has been formedfeasibility of sustained high rates of economic through active collaborations with the officialgrowth. The third type of modelling capability agencies, scholars and universities in India andthat 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
  33. 33. 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
  34. 34. 2005 2006The study aims to provide an assessment of the DEVELOPMENT OF INDIRECT TAX MODEL INvariations 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 / USAIDexamines the competitiveness of the domestic The tax model for the three USAID-industry in the context of import duties REFORM States – Karnataka, Jharkhand andapplied to this sector. Uttaranchal – should provide a detailed The study has pointed to the wide framework for projecting indirect taxes by yeardiscrepancy in the estimated quantity of and analyse the revenue impacts of proposedproduction and consumption of alcohol. The indirect tax policies by creating or changing taxhigh taxes lead to evasion, especially when law parameters to compute the resulting taxenforcement mechanism is weak. Putting liability. The model should be flexible enoughtogether data from various sources, the study to allow the user to specify alternate taxplaces the estimates of India Made Foreign policies for most indirect taxes and sufficientlyLiquor (IMFL) and Country Liquor detailed to provide estimates of VAT.production/consumption at 7677.2 million PROJECT TEAM: ANUSHREE SINHA, SHASHANKAlitres during 2005, which means actual BHIDE, SAURABH BANDYOPADHYAY, PURNA CHANDRAproduction and consumption of alcohol, is PARIDA, POONAM MUNJAL, PRAVEEN SACHDEVA, RAKESHaround 3.5 times the level indicated by the KUMAR SRIVASTAVA, SUDESH BALA AND SADHANA SINGHdata on State Excise Revenue Statistics.Clearly, this has serious implications from the QUARTERLY REPORTS FOR THE EMBASSY OFrevenue 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 Delhireduce consumption of alcohol, both objectives Developed four quarterly reports for theseem to be undermined. Embassy of Japan. Topics covered: “Value-PROJECT TEAM: SHASHANKA BHIDE, J S BEDI AND Added Tax in India – June 2005”; “FundingL M PANDEY Infrastructure in India” – September 2005”; “Supply and Demand of Petroleum ProductsDEVELOPMENT OF STATE-LEVEL MACRO in India – December 2005”; “India-SingaporeDATABASE IN THE THREE USAID-REFORM CECA – March 2006”.STATES (M/05/071) PROJECT TEAM: RAJESH CHADHA, DEVENDRA KUMARSPONSOR: Bearing Point /USAID PANT, ANJALI TANDON AND ABHISHEK AKHOURI Proposed a framework for developingmacro-economic databases for the three JOINT STUDY GROUP (JSG): ECONOMICUSAID-REFORM States – Karnataka, COOPERATION BETWEEN INDIA AND JAPANJharkhand and Uttaranchal. The database was (M/05/076)developed in SQL Server 2000 and included SPONSOR: Ministry of Finance, Governmentboth industry and fiscal data sets. The data are of Indiacomprehensive enough for the Fiscal Policy Developed two chapters of the JSG Report onAnalysis 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 TANDONPROJECT TEAM: SHASHANKA BHIDE, ANUSHREESINHA, 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

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