The authors say that India is making rapid strides in reducing extremes of poverty. The proportion of people living in
extreme poverty has been falling since 19991 – when India launched its economic reforms. If India stays on track, the authors are reasonably confident that extreme poverty could end within twenty years.
India is largely an agrarian economy, and agriculture contributes over half of employment. It goes without saying that sustained – and equitable – growth requires the development of rural India. To bring this about, infrastructure in the villages (rural infrastructure) needs to be improved. Water, power, communications and roads are poor in quality and lacking in regular maintenance. The rural poor have difficulty in meeting even their most basic needs. The authors regret that the system of directed subsidies is corrupt and inefficient - and is unable to deliver the required benefits to those who are in dire need.
Democracy is putting pressure on the administration to deliver results. The authors say that the government needs to focus its efforts towards high priority areas such as rural infrastructure, health and education. They feel that public sector disinvestment could help – by providing the necessary funds for investment.
The authors feel that the availability of new technologies could help in reducing extremes of poverty. What are required are improved seed varieties, and better water, soil and land management techniques. In sum, a second Green Revolution is needed. Though the public health service still leaves a lot to be desired, the authors say that the Mid-day meal scheme has proved effective in the enrolment of students. Democracy at the grassroots level is beginning to show results in some parts of the country. And a number of private firms have shown viable IT-driven business models in rural areas. They feel that the responsibility of ensuring quality education in the schools should be handed over to the Panchayats.