Annual Report 2004–2005

NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH Contents 2004-05

Contents

The Institution The Governing Body 1 List of Members 2

Director-General's Report 5

Activities 2004-05 Publications 9 Research Programmes 15 Public Affairs 43

Finances 2004-05 Annual Accounts 2004-05 47

Appendix I: Activities of Senior Staff 67

Appendix II: Resources Staff Composition 77 Library 81 Computer Centre 83

July 2005

Published by

Sunil K. Sinha Registrar & Secretary (Acting) National Council of Applied Economic Research Parisila Bhawan, 11 Indraprastha Estate, New Delhi 110 002 Tel.: (91-11) 23379861-3 Fax: (91-11) 23370164

Email: [email protected] Website: www.ncaer.org

National Council of Applied Economic Research [i] Annual Report 2004-05

Abbreviations/Acronyms

ABARE Australian Bureau of Agriculture and Resource Economics ACIAR Australian Centre of International Agricultural Research AIMA All- Management Association AoA Agreement on Agriculture (WTO) APEDA Agricultural and Processed Food Export Development Authority ASSOCHAM Associated Chambers of Commerce and Industry ATC Agreement on Textiles and Clothing AWCs Anganwadi Centres CDPOs Child Development Project Officers CEC Comprehensive Economic Cooperation CERC Central Electricity Regulatory Commission CGE Computable General Equilibrium CICs Community Information Centres CIDA Canadian International Development Agency CPRC Chronic Poverty Research Centre CUTS Consumer Unity and Trust Society DCF Discounted Cash Flow DELs Direct Exchange Lines DEPB Duty Entitlement Pass Book Scheme DFID Department for International Development DTES Domestic Tourism Expenditure Survey DWCD Department of Women and Child Development EPS Electronic Payment System ERV Exchange Rate Variation FDI Foreign Direct Investment FTA Free Trade Agreement GATS General Agreement on Trade in Services GSTP Global System of Trade Preferences GTAP Global Trade Analysis Package HDFC Housing Development Finance Corporation Ltd. ICDS Integrated Child Development Services Scheme ICFAI Institute of Chartered and Financial Analysis of India IEG Institute of Economic Growth IES Indian Economic Service IHS The Institute of Health Systems IMF International Monetary Fund HSCs Health Sub-centres HSDO High Speed Diesel Oil

[ii] National Council of Applied Economic Research Abbreviations/Acronyms 2004-05

ICT Information and Communication Technology IFPRI International Food Policy Research Institute INSA Indian National Science Academy IWT Inland Water Transport JICEC Japan-India Comprehensive Economic Cooperation KCC Kisan Credit Card MHW Male Health Workers LDO Light Diesel Oil LSHS Low Sulphur High Stock MFA Multi-fibre Arrangement MIMAP Micro Impact of Macro and Adjustment Policies MISH Market Information Survey of Households MLAPS Monthly Local Area Pass System NACO National AIDS Control Organisation NBER National Bureau of Economic Research NERO National Economic Research Organisation NHAI National Highways Authority of India NIC National Informatics Centre NISTAD National Institute of Science, Technology and Development Studies NOK Norwegian Kroner NORAD Norwegian Agency for Development Cooperation OECD Organisation for Economic Cooperation and Development PCA Principal Component Analysis PSEs Public Sector Enterprises QRs Quantitative Restrictions REDS Rural Economic and Demographic Survey RFP Request for Proposal SAM Social Accounting Matrix SANEI South Asia Network of Economic Research Institutes SEZs Special Economic Zones STD Subscriber Trunk Dialling TSA Tourism Satellite Account UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNFPA United Nations Fund for Population Activities USAID United States Agency for International Aid VPTs Village Public Telephones

National Council of Applied Economic Research [iii] Annual Report 2004-05

[iv] National Council of Applied Economic Research The Institution 2004-05

The Institution

The Governing Body*

he Governing Body met twice during 2004–05: on August 4, 2004 and December 8, 2004. The General TBody met on August 4, 2004. President Vice-President M. S. Verma, Ex-Chairman, Telecom Regulatory Authority of India, New Delhi and State Bank of India Secretary Sunil K. Sinha (Acting) Members Shankar N. Acharya Honorary Professor and Member, Board of Governors, Indian Council for Research on International Economic Relations (ICRIER), New Delhi Chairperson, Board of Trustees, International Food Policy Research Institute, Washington D.C. Mukesh D. Ambani Chairman, Reliance Industries Limited, Suman 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 Chairman, ITC Limited, Kolkata Ashok Jha Secretary, Economic Affairs, Ministry of Finance, (ex-officio) Ashok S. Ganguly Chairman, ICICI One Source Limited, Mumbai K.V. Kamath Managing Director and CEO, ICICI Bank Limited, Mumbai Naina Lal Kidwai Deputy Chief Executive Officer, Hongkong & Shanghai Banking Corporation Limited, Mumbai Anand G. Mahindra Managing Director & Vice-Chairman, Mahindra & Mahindra Limited, Mumbai R.A. Mashelkar Director-General, Council for Scientific and Industrial Research (CSIR), New Delhi Kiran Mazumdar-Shaw Chairperson & Managing Director, Biocon India Limited, Bangalore Deputy-Governor, Reserve Bank of India Rohini Nayyar Senior Consultant (Rural Development), Planning Commission, New Delhi Deepak S. Parekh Chairman, Housing Development Finance Corporation (HDFC) Limited, Mumbai Rajendra S. Pawar Chairman, National Institute of Information Technology (NIIT), New Delhi

*As on July 15, 2005.

National Council of Applied Economic Research [1] Annual Report 2004-05

List of Members

The list of members for the year 2004–05 (as on March 31, 2005) is as under:

Founder Members

Late Shri J.R.D. Tata Late Shri N.R. Pillai Late Shri C.D. Deshmukh Late Shri T.T. Krishnamachari Late Shri John Mathai Late Shri V.T. Krishnamachari Late Shri J.F. Sinclair Late Shri Ashoka Mehta

Life Members

Shri Subir Gupta Shri S.M. Wahi Shri D.N. Patodia

Patron Members

Bata India Limited DCL Polyesters Limited ICICI Bank State Bank of India

Special Member

New Zealand High Commission, New Delhi

[2] National Council of Applied Economic Research The Institution 2004-05

Corporate Members

1. A.F. Ferguson & Company 24. Kabot India Ltd. 2. Asian Development Bank 25. Kirloskar Oil Engines Ltd. 3. Associated Chambers of Commerce 26. Kochi Refineries Ltd. and Industry 27. Life Insurance Corporation of India Ltd. 4. Bharat Petroleum Corporation Ltd. 28. Mahindra and Mahindra Ltd. 5. Bhartia Industries Ltd. 29. Milk Producers' Union Ltd. 6. Central Electricity Regulatory 30 Mineral and Metal Trading Corporation Commission of India Ltd. 7. Confederation of Indian Industry 31. National Dairy Development Board 8. Crompton Greaves Ltd. 32. National Mineral Development 9. Deepak Talwar and Associates Corporation Ltd. 10. E.I.D. Parry (India) Ltd. 33. Orient Paper and Industries Ltd. 11. Eicher Goodearth Ltd. 34. Pepsi Foods Pvt. Ltd. 12. The Export Credit Guarantee 35. PHD Chamber of Commerce and Industry Corporation of India Ltd. 36. Piaggio Vehicles Pvt. Ltd. 13. Federation of Indian Chambers of 37. Population Council for South and East Asia Commerce and Industry 38. Punjab National Bank 14. Godrej and Boyce Manufacturing 39. Punjab University Co. Ltd. 40. Sakthi Sugars Ltd. 15. Government of Meghalaya 41. Shell India Pvt Ltd. 16. Government of Tripura 42. Tata Consultancy Services 17. Hindalco Industries Ltd. 43. Tata Iron and Steel Company Ltd. 18. Hindustan Lever Ltd. 44. Tata Motors Ltd. 19. ICRA Ltd. 45. Tata Power Co. Ltd. 20. Indian Banks' Association 46. Telecom Regulatory Authority of India 21. Indicus Analytics 47. Uttar Pradesh Electricity Regulatory 22. Industrial Development Bank of India Commission 23. Insurance Regulatory and 48. V. Malik and Associates, Chartered Development Authority Accountants

Ordinary Members

1. Dr. D.R. Agarwal 8. Mr. Rajan S. Talekar 2. Mr. M. Balasubramaniam 9. Mr. Suresh Talwar 3. Mr. R.T. Doshi 10. Mr. Narendra B. Vasi 4. Mr. K.C. Jain 11. Birla Institute of Technology and Science 5. Dr. A. Subbarama Naidu 12. EPW Research Foundation 6. Mr. Shantilal K. Somaiya 13. Sir Library 7. Mr. Stya Paul

National Council of Applied Economic Research [3] Annual Report 2004-05

Number of Members March 31, 2004 March 31, 2005 Corporate members paying Rs. 5000/- per annum 52 48 Ordinary members paying Rs. 500/- per annum 12 13 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 69 66 Total fees received Rs. 266, 000 Rs. 240, 000

[4] National Council of Applied Economic Research Director-General's Report 2004-05

Director-General's Report

Introduction n the year under review, the National Council saw the fruits of various initiatives launched over the past few years. 2004–05 marked the beginning of my fifth year as IDirector-General; it also marked the completion of 48 years of the Council's existence. As I write, the Council is in its 49th year, and we are beginning to think ahead to the Golden Jubilee in 2006–07.

In preparation for that event I am pleased to report that all outgoing members of our distinguished Governing Body have agreed to review their association with the Council for an additional three-year term. We also welcome three new members: Dr. Isher Ahluwalia, Mrs. Kiran Mazumdar-Shaw and the incoming Secretary, Department of Economic Affairs, Mr. Ashok Jha.

I am most grateful for the time and support that I am fortunate to receive from the President, Dr. Jalan, the Vice-President, Mr. M. S. Verma and distinguished members of the Governing Body. I would also like to acknowledge the contribution made by Brig. Narinder Sapra as Registrar and Secretary in his three years with us.

International Links In last year's message I referred to our increasing intellectual links with international partners and sponsors. This process further deepened in 2004–05. Our partnership with the National Bureau of Economic Research (NBER) of Cambridge, MA resulted in our sixth joint conference on the Indian economy at Neemrana, Rajasthan.

We were honoured this year by the visit of the Honourable Finance Minister, Shri P. Chidamabaram to the conference, as well as that of Smt. Vasundhara Raje, Chief Minister of Rajasthan.

I would once again like to thank Professor Martin Feldstein, President, NBER for his personal involvement and interest in this exercise, and for exposing India (and the NCAER) to an expanding range of top-notch NBER Fellows over the years.

Given the rapidly growing interest in the Indian economy overseas, the conference helps equip a wide and influential array of NBER fellows with a basic understanding of Indian policy issues. In turn, interaction with empirical policy economists of the highest quality helps enrich our own awareness of the frontiers of this demanding craft.

While the event is not designed to influence research or policy directly, over the years Indian participants at various levels (policy, media, academic) have conveyed to me the stimulus their own work has received from the intense, but relaxed and informal, environment of Neemrana.

This past year we extended the Neemrana programme to include academic workshops in Delhi for the benefit of younger researchers. We are extremely grateful to the NBER Fellows (Ann Harrison, Alan Gustman, Richard Clarida, and Robert Feenstra) who were willing to put in the additional effort that this involved. I would also be remiss in not acknowledging the efforts of NCAER's own staff, both academic and administrative, in making this and other such events run smoothly.

The year also saw the launch of the inaugural volume of our joint venture with the Brookings Institution. Called the India Policy Forum (IPF), the venture emulates the format of the well-established Brookings Papers on

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Economic Activity. Guided by an Advisory Panel and a panel of active researchers, a three-person editorial board commissions empirical research papers on topics of current policy interest from specialists in the field, and has these debated in a workshop (held in Delhi) as the basis for a publication.

The successful completion of the first cycle was commemorated at a launch of the inaugural volume by the Deputy Chairman of the Planning Commission, Mr. Montek Singh Ahluwalia in February 2005, under the Chairmanship of Dr. Bimal Jalan, President, NCAER Governing Body, and in the presence of Mr. Strobe Talbott, President (CEO) of the Brookings Institution. Dr. Jalan and I were further privileged to be able to present a copy of the inaugural volume to the Prime Minister, Dr. .

In addition to feeding the debate on Indian economic policy, the IPF is also designed to provide a forum for research interaction between scholars interested in India, both based in India and abroad. As such, it is necessarily a somewhat expensive venture, and I would like to thank our corporate launch partners, State Bank of India, Citigroup and HDFC, as well as the Ford Foundation and USAID for their willingness to back this initiative.

India's rising profile in the international economic and diplomatic arena is reflected elsewhere in last year's programme as well. It was the subject of our Third Sir John Crawford Lecture, delivered by the eminent Australian economist Ross Garnaut, AO on the topic "Different Reform Paths: India, Australia and China". The lecture was jointly sponsored, as before, by the NCAER and the Australia-India Council of Canberra.

Economic reform was also the subject of the lecture by the First Deputy Managing Director of the International Monetary Fund (IMF), Dr. Anne O. Krueger, entitled "Shared Experience: What Reforming Economies Have In Common". Here, I should like to acknowledge Dr. Krueger's continuing involvement with the NCAER over the years, including her regular participation at the Neemrana conferences, and her support for our wider collaboration with various departments of the IMF. Our jointly sponsored conference of two years ago on "India and China: A Tale of Two Giants" is soon to be published by the IMF.

India's efforts to fashion a new "trade geography" blending bilateral, multilateral and regional initiatives, and its rising importance as a key player in the ongoing Doha round of multilateral negotiations has resulted in new links with scholars at the University of Melbourne (supported by the Australian Council for International Agricultural Research). We continue to maintain ties with trade researchers at the University of Michigan and Purdue University, the latter as part of our participation in the global network of institutions that support the Global Trade Analysis Package (GTAP) data base. Meanwhile our long-standing support to the Ministry of Commerce on the negotiations on the Agreement on Agriculture continues.

It would be remiss of me not to mention some of our partnerships on more purely domestic issues. Over the years, through a range of US universities (Pennsylvania, Harvard, Maryland) the National Institute of Health of Bethesda, MD has indirectly supported NCAER in the collection of some extremely significant data sets on household health and demographic behaviour.

The recently completed third Rural Economic and Demographic Survey (REDS) provides an additional round of panel data for a group of rural households over 30 years of Indian economic development, from the late 1960s till the late 1990s. As these data are analysed, they are beginning to provide considerable insight into the dynamics of the development process at the household level.

Equally, the ongoing Maternal and Child Health survey led by scholars at the Department of Sociology of the University of Maryland in co-operation with our senior researchers also tracks households surveyed previously in the mid-1990s. Such surveys capitalise on NCAER's long-standing skills in conducting large-sample detailed national household surveys in the complex Indian social and linguistic environment.

Finally, I should mention our success in partnering with the Centre for Economic Policy Research (CEPR), London (and, through them, institutes in France and Belgium) to obtain a generous grant from the European

[6] National Council of Applied Economic Research Director-General's Report 2004-05

Union's India office to support an extensive programme of interchange on regulatory issues in infrastructure and finance over the next two years.

I have devoted space to our international links for three reasons. First, because I firmly believe that strong intellectual links are an essential complement to strong commercial and diplomatic links. After its considerable visibility in the 1950s, India faded from world attention as a consequence of its turn inward. This process is now being reversed, and the intellectual community has its part to play.

Second, international partnerships are an effective method of capacity development: we see best practice elsewhere, and are motivated to emulate it. Third, as I have said in previous messages, it is both logical and likely that empirical research on development issues will gravitate toward institutions located within developing countries.

In addition, as India becomes a more important player in the international economy, there will be a need for intellectual capacity to help it define its own interests in global arrangements. For all these reasons, deepened international engagement makes considerable sense for the NCAER as it confronts its next half-century.

Research Highlights While NCAER's international links are of growing significance, the Council was founded to be a resource available to support India's economic development through its provision of analytic support to both the public and the private sector. Over the past year we were privileged to be called upon by a number of Government and other bodies to assist them in their work.

Particularly noteworthy in this regard was our cooperation with the India National Science Academy (INSA) to produce the first India Science Report. This was a new exercise for both our sponsors and ourselves, and was intended to reflect India's emerging role as an important locus of research and development activity in the world. In preparation, the NCAER team consulted a wide range of international examples to ensure that the concepts and definitions used would be internationally compatible. The resulting report, soon to be officially released, will add significantly to our knowledge on the sources, scale and deployment of India's scientific and technical manpower. I would like to thank the successive Presidents of INSA, Dr. Valiathan and Dr. Mashelkar for the confidence placed in us.

In a similar vein, we have continued our productive relationship with the Department of Information Technology in coming up with methodologies for assessing the E-Readiness of Indian States and the evolution of E-Governance initiatives. In other areas, our domestic Tourism Survey of last year has been exploited to put together a first set of Tourism Satellite Accounts (TSA) for India. The methodology developed by NCAER staff to develop estimates of the frequency of domestic tourist visits has been held up as a model by the World Tourism Organisation (WTO).

Supported by the Planning Commission, and also by the Canadian International Development Agency (CIDA), we have developed a significant body of work at various levels of analytic depth to assess the economic developments of certain key Indian states.

NCAER also remains alert and responsive to the needs of the industrial sector. An important initiative in this regard has been our partnership with the Business Standard newspaper in transforming the results of our well established survey, the Market Information Survey of Households (MISH) into a pair of publications designed to make this data more widely known and used.

An obvious question that arises from the above list of activities is whether NCAER is spread too thin, whether it should specialise further, and if so, in what areas. As the above narrative has already indicated (and as was endorsed by the Governing Body), NCAER's capacity to undertake field work, while relatively unusual amongst policy research organizations, is an essential part of its identity and should be encouraged. The Council's

National Council of Applied Economic Research [7] Annual Report 2004-05 professionalism and perceived neutrality make it a useful actor in stimulating reasoned, empirically based, non- partisan debate on issues of public policy and so its public affairs and communications role should also be strengthened. As against this, improving NCAER's interaction with the private sector remains an issue on which more thinking needs to be done.

Management Issues and Perspectives In its internal management and systems, NCAER today is a qualitatively different institution from what it was four years ago. The two most significant changes over this period have been the reduction in its total headcount and the replacement of the divisional structure with a looser set of groupings, and a significant reduction in the number of hierarchical layers. There has also been a major upgradation of our performance appraisal systems.

The principles underlying these changes have been explained in earlier reports. They include the need to distinguish more clearly between core staff and contingent staff, the need to use core staff more flexibly and more fully, the need to align compensation systems with organisational goals and incentives, and the need to keep compensation competitive, so as to retain talent in the increasingly dynamic labour market.

Over the past year this process continued. We put in significant effort in implementing our new performance- linked compensation system for all regular staff, and shortly expect to make the first awards (for performance in 2004-05) based on that system. Further, the role of the Management Council was enhanced through the institution of various standing committees. We have also created a new role, that of Senior Research Councillor and appointed one of our senior-most researchers to the post (part-time) to give particular attention to research management and staff development issues.

With regard to headcount of core research staff, our numbers have come down from 65, as on March 2001, to 37 in March 2005. A glance at our financial results would show that the project load carried by this much smaller core staff is not significantly different from five years ago. The story with respect to support staff is less dramatic but still significant. These changes have been accompanied by changes in our accounting policies, which are now well established and provide a better basis for assessing our financial performance. As in recent years, and in consultation with our statutory auditors, we are attempting to improve the management and transparency of our excessively large receivables.

Nonetheless, there remain significant financial (and other) issues to be addressed. Despite the fact that in most cases we undertake work in advance of being paid, we do not have a provision for working capital, leading to expensive use of overdraft finance. Having squeezed much of the under-utilisation of resources out of the system, we are still not in a position to fund our maintenance and capital expenditure needs from surpluses. Even so, when we bid for projects, we are often criticised for being too expensive. The policies of many of our official sector sponsors also do not permit full recovery of overhead. Recovering financial payments for completed work, particularly from government departments is often a major struggle. These, therefore, remain important challenges that the Management and the Governing Body will need to address to ensure continued viability of the Council's business model. There is also much to be done to improve our communications, publication and electronic offerings, as well to improve utilisation of our large and valuable data holdings. These are some of the issues being addressed by the new Standing Committees of the Management Council.

In conclusion, let me thank the staff of the Council for their maturity and professionalism and their support of the change initiatives underway. As the external market for their skills heats up, most of them have attractive opportunities outside the Council. They choose to stay primarily because of the nature of the work the Council offers and the atmosphere of professionalism. Since they themselves are the major contributors to that professionalism, I would like to thank them for it.

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Activities 2004-05 Publications* Books The Great Indian Middle Class: Results from the NCAER Market Information Survey of Households (2004, NCAER and Business Standard, Rs. 250,000/US$ 5,500, pp. 224)

The third volume in The Great Indian Middle Class series, this book is an essential guide for marketers, corporate houses, advertising agencies, media and research companies, consultancy firms, industry associations, trade commissions and business schools. It builds on and expands the analysis previously undertaken in The NCAER Very Rich White Book, published in 1998 and 2001. Based upon the NCAER Market Information Survey of Households (MISH), with a sample size of over 300,000 households, it offers valuable insights into the economic lives of the growing Indian Middle Class. An additional innovation is the reclassification of household income bands to permit a finer discrimination of income categories across regions and cities. Relating these income bands to MISH data on ownership and penetration of key consumer durables, provides a link between our survey-based income data and generally accepted attributes of middle-class consumption. An increasingly wealthy segment, the Indian middle class offers huge potential to marketers, both local and global.

Principal NCAER Staff: Rajesh K. Shukla, Sanjay Kumar Dwivedi and Asha Sharma with assistance from Sunil Jain, Business Standard

The Kisan Credit Card Scheme: Impact, Weaknesses and Further Reforms (2005, NCAER, Rs. 400/US$ 25, pp. 180)

Given the Kisan Credit Card (KCC) Scheme's spread after 1988–89, this study answers some vital questions: How simple and effective is KCC – does it assure timely availability of production credit; what about the small farmers? Does the annual review process reward those who make timely payments; how is the recovery performance of loans?

Having identified KCC's key weaknesses we identify solutions that ensure the Scheme's intended objectives are met.

Principal NCAER Staff: Anil Sharma

*Research programmes and study output published as on July 1, 2005 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 website: www.ncaer.org or [email protected]

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Reports The India Science Report (2005, Price: free, pp. 164)

The first India Science Report was prepared by NCAER for the Indian National Science Academy (INSA) under the guidance of its president and Steering Committee. By agreement with INSA it focuses on science education, human resources in science and technology and public understanding of science. The core of the report is the result of a survey covering these topics, the India Science Survey 2004, perhaps the first such survey conducted in a developing country (even though such surveys have been conducted for several decades in industrial countries). The NCAER team has made every effort to use international classifications and definitions to ensure comparability of these survey results with other international data. The report needs to be seen as an effort towards strengthening the S&T statistical network within the country.

Principal NCAER Staff: Rajesh K. Shukla

India: E-Readiness Assessment Report 2004 (2004, Price: free, pp. 126)

This study classifies states/ union territories into leaders, aspiring leaders, expectants, average achievers, below average achievers and least achievers. The report examines new dimensions of e-readiness, bringing forth a strong correlation between economic development and ICT. With case studies evaluated on the basis of Sen and Brown's evaluation framework and buttressed by an analysis of the project's sustainability and scalability, the rankings are based on an e-readiness composite index computed through a multi-stage Principal Component Analysis (PCA). The study used the Networked Readiness Index framework, 2003–04 (based on broad parameters such as the environment for ICT, readiness of key stakeholders and usage of ICT among key stakeholders). Various ICT case studies were analysed to validate hypotheses after an introductory analysis of the role and contribution of the ICT sector to the Indian economy.

Principal NCAER Staff: R. Venkatesan

Joint Census of Handlooms and Powerlooms Report (1995–96): Handlooms Sector (2004, Price: free, NCAER, pp. 220)

Supplementing state-wise authentic information on various indicators, particularly the socio-economic profile of weaver households, distribution of weaver units and weavers, details about types of looms, yarn consumption and fabric production, this second census was undertaken in 1995–96, for both the handloom and power loom sectors, with a view to estimating changes in the economy and to formulate future policy. The target population included all weaving households/weavers in the country.

[10] National Council of Applied Economic Research Activities 2004-05

The first national handloom sector/ weavers census, conducted in 1987–88, covered 27 states/union territories and provided a sound database.

Principal NCAER Staff: S. K. Dwivedi

Joint Census of Handlooms and Powerlooms Report (1995–96): Powerlooms Sector (2004, Price: free, NCAER, pp. 214)

Based on the above-mentioned census, this report highlights the state-wise distribution of power loom units, employment, wage levels, investment in this sector, yarn consumption and fabric production. A moratorium was placed from 1956 to 1988 on the growth and installation of new power looms in the organized and the decentralised sectors, to protect the handloom sector from the threat of power loom units. However, during the same period, there was no restriction on the manufacture of power looms. As a result, their numbers have shown a rapid increase. Most fall in the decentralised sector about which no firm data is available. According to annual reports of the Ministry of Textiles, power loom units account for nearly 72 per cent of the total cloth production in the country. A 1995 census by the Office of the Development Commissioner of Handlooms to get firm data on the sector (required for policy formulation and evaluation purposes) was undertaken with NCAER as nodal consultant on behalf of the central government.

Principal NCAER Staff: S. K. Dwivedi

Journals India Policy Forum (Annual) (NCAER and the Brookings Institution, Washington D.C., Rs. 495, pp. 350) Suman Bery, Barry Bosworth, and Arvind Panagariya (Eds.)

Launched in 2004 and dedicated to research on the contemporary Indian economy, this publication provides a forum for addressing the scope, speed, and impact of economic reforms within India. Published jointly, this inaugural issue contains papers presented at the India Policy Forum Conference, held in New Delhi in March 2004. The India Policy Forum aims to nurture a global network of scholars interested in India's economic transformation.

Contributor Highlights  Panagariya, A. (2004). "India's Trade Reform."  Lawrence, R.Z., & Chadha, R. (2004). "Should a U.S.–India FTA Be Part of India’s Trade Strategy?"  Joshi, V., & Sanyal, S. (2004). "Foreign Inflows and Macroeconomic Policy in India."  Patnaik, I. (2004). "India's Experience with a Pegged Exchange Rate."  Kletzer, K. (2004). "Liberalizing Capital Flows in India: Financial Repression, Macroeconomic Policy, and Gradual Reforms."  Banerjee, A., Cole, S., & Duflo, E. (2004). "Banking Reform in India."

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Quarterly Review of the Economy (Quarterly) (NCAER, annual subscription, including postage, Rs. 50, 000/ US$ 1500)

Overview Forecast Agriculture Co-ordinator: Devendra Kumar Pant Industry Services Money and Capital Markets External Sector Prices Public Finance Designed to meet the needs of policy makers, corporates and others interested in Data File tracking the latest developments in the Indian economy, Quarterly Review provides an analysis of current policies and tracks developments in the domestic and world economy. July 2005 NCAER growth forecasts are objective and widely quoted in Indian and international media. An integral part of the Quarterly Review are the quarterly State of Economy Seminars organised at NCAER, bringing together policy makers, industry leaders and researchers on a single platform.

Margin (Quarterly) (NCAER, annual subscription, including postage, Rs. 500/ US$ 100) Volume 36, No. 3; Volume 36/37, No. 4/1 (combined), Volume 37, No. 2

Editor: T.C.A. Srinivasa-Raghavan

Margin's emphasis on policy analysis and application of modern quantitative techniques in developmental issues brings forth research findings in broad areas of applied economics, provides a forum for well-known scholars, civil servants and journalists to comment on public affairs, while also serving as a vehicle for dissemination of research at the Council.

Contributor Highlights  Buragohain, T. (2005). "India's 'Nowhere' Children Defy UEE." 37 (2), Jan.-Mar.  Chadha, R., Sharma, P., & Sinha, S. (2004). "Andhra Pradesh: Engines of Growth." Combined issue: 36(4) & 37(1), July-Sept./Oct.-Dec.  Chadha, R., & Pratap, D. (2004). "India-Singapore Co-operation." Combined issue: 36(4) & 37(1), July-Sept./Oct.-Dec.  Chadha, R., Sinha, S., Pant, D.K., Pratap, D., Sharma, P., Tandon, A., & Ghosh, P. (2005). "Toward Indo-Japan Economic Cooperation." 37(2), Jan.-Mar.  Desai, A.V. (2005). "A Brief History of Telecommunications." 37(2), Jan.-Mar.  Kaur, S. (2004). "Disinvestment and Employment." Combined issue: 36(4) & 37(1), July-Sept./Oct.- Dec.  Malik, P. (2004). "Power in India: Market Structures and Options." 36(3), Apr.-June.  Pant, D.K. (2004). "Dealing with Disparities." Combined issue: 36(4) & 37(1), July-Sept./Oct.-Dec.  Rao, S. (2005). "Liberalisation and Productivity." 37(2), Jan-Mar.  Srinivasa-Raghavan, T.C.A. (2004). "Open Access and Competition in Power." 36(3), Apr.-June.  Venkatesan, R., & Saluja, M.R. (2005). "Domestic vs. Imported Fibres in Yarn Exports." 37(2), Jan-Mar.

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Artha Suchi (Quarterly) (NCAER, annual subscription, including postage, Rs. 300/ US$ 80) Volume 21, Number 3& 4 (combined), Volume 22, Number 1, 2

Editor: N.J. Sebastian

A computerised index of government reports/journal articles/newspaper write-ups relating to the Indian economy, brought out by the NCAER Library.

MacroTrack (Monthly) (NCAER, annual subscription, including postage, Rs. 3000/US $100) Volume 6, No. 4 to Volume 7, No. 3 (12 issues)

Editor: Sunil K. Sinha

Information and research-based analysis on major trends in the economy, industry, and finance. Supplementary analyses, based on NCAER's Business Expectations Survey (BES) and the NCAER Macroeconomic Forecast, are also included. Each issue carries statistics on major states, based on current issues of economic importance.

Other Publications  Bandyopadhyay, S. (2005). Emerging India: Transition to a Cash-less Society. Visa International.  Bery, S.K., & Shukla, R.K. (2005). "NCAER's Market Information Survey of Households: Statistical Properties and Application for Policy Analysis", in Deaton A. & Kozel, V. (Eds.), Data and Dogma. The Great Indian Poverty Debate, Macmillan, New Delhi, pp. 484–494  Bery, S.K. (2004, Dec. 18). "Grand Bargains and Free Lunches", In the H.T. Parekh Column, Economic and Political Weekly.  Bhide, S. & Kalirajan, K.P. (2004). "Impact of Trade Liberalisation on Employment in Indian Manufacturing: Evidence from the Organised Sector", Journal of Social and Economic Development, VI(1), Jan-June.  Bhide, S. & Mehta, A.K. (2004, July). "Chronic Poverty in Rural India: Issues and Findings from Panel Data", Journal of Human Development, 5(2).  Bhide, S., Meenakshi, R. & Vani, B.P. (2005). "Do Macroeconomic Conditions Matter for Agriculture? The Indian Experience". Working Paper No. 162, Institute for Social and Economic Change, Bangalore.  Chadha, R. (2004). "The Temporary Movement of Workers – GATS Mode 4, Chapter 3", in Winters, L.A., & Mehta, P.S. (Eds.), Bridging the Differences: Analysis of Five Issues of the WTO Agenda.CUTS, EUIAS and University of Sussex.  Kaur, R., & Sudarshan, R.M. (2004). "Making Women's Informal Work Growth Oriented: Some Issues", in Shah. J. & Nambiar, R.G. (Eds.), Informal sector in India Pathways to Viability and Growth. Sardar Patel Institute of Economic & Social Research. .

National Council of Applied Economic Research [13] Annual Report 2004-05

 Mukhopadhyay, D. (2005). "Indian Two-wheeler Industry: A Perspective". Federation of Automobile Dealers Association Journal, volume 3, Issue X, January.  Mukhopadhyay, D. (2004). "Synergising Information and Communication Technology with Development Process, Innovation in the 21st Century (Special issue). Effective Executive, ICFAI University Press, December.  Mukhopadhyay, D. (2004). Case Study Analysis: US Steel Industry in 2004: Still in Need of Protection", Case Folio, ICFAI University Press, December.  Pohit, S. (2004). "Investing in FDI: A Case of Too Little Too Late? Investment for Development". CUTS Centre for International Trade, Economics and Environment, No. 4, pp. 7.  Pohit, S., Mohanty, S.K., & Sinha Roy, S. (2004). "Implications of Economic Co-operation among JACIK Countries: A CGE Modelling Approach", in Kumar, N. (Ed.), Towards an Asian Economic Community: Vision of a New Asia. RIS (India) and ISEAS (Singapore).  Pohit, S., & Das, S. (2004). Paper on "Quantifying the Transport, Regulatory and Other Costs of Indian Overland Exports to Bangladesh". Proceedings of The 7th Annual Conference on Global Economic Analysis, the World Bank, Washington D.C. June 17–19.  Pohit, S., Mohanty, S.K., & Sinha Roy, S. (2004). "Towards Formation of Close Economic Cooperation among Asian Countries". RIS Discussion Paper, No. 78.  Pohit, S., Taneja, N., Sarvananthan, S., & Karmacharya, B.K. (2004). "India's Informal Trade with Sri Lanka and Nepal: An Estimation", South Asia Economic Journal, (5)1, Jan.-June, pp. 27-54.  Pohit, S., Taneja, N., Sarvananthan, S., & Karmacharya, B.K. (2005). "Informal Trade in India, Nepal, and Sri Lanka", in Khan, M. (Ed.), Economic Development in South Asia. Tata McGraw-Hill, New Delhi.  Pradhan, B.K., Chaubey, P.K., & Roy, P.K. (2005). Monograph on Dimensions of Effectiveness of Employment in India: An Exploration Based on the MIMAP-India Household Survey. Indian Institute of Planning and Administration, New Delhi.  Shariff, A. (2004, July). Report: Regional Macroeconomics and Health Framework. World Health Organisation (WHO), New Delhi.  Shariff, A. (2005). "Growth and Equity in India: Does Governance Matter?" Denouement, Jan.-Feb.  Shariff, A., & Lanjouw, P. (2004, Oct. 2). "Rural Non-farm Employment in India: Access, Incomes and Impact on Poverty", Economic and Political Weekly, 39(40): 4429–4446.  Sharma, A. (2005). "Markets Hold the Key to Rural Prosperity", Business Rural India, 1(1), March.  Shukla, R.K. & Sharma, A. (2004). "No End to the Car Boom". Pitch, 1(5).  Shukla, R.K. (2004). "Crorepatis: India's Super-Rich Multiply – Cover story". Pitch, 1(8).  Shukla, R.K. (2005, March 15-April 15). "Profit from the Churn and Change", Pitch, II(6)  Singh, K., & Kalirajan, K. P. (2004), "A Decade of Economic Reforms in India: the Mining Sector", Resource Policy, 29 (3–4), pp. 139–51.  Sinha, A., & Adam, C. (2004, Sept.) "Reforms and Informalisation: What Lies Behind Jobless Growth in India?" (PDF 172KB) Cited in: URL address: South Asia Labour Activists Library | www.sacw.net Also at: http://www.wider.unu.edu

[14] National Council of Applied Economic Research Activities 2004-05

Research Programmes*

Programme Sponsor/Partner 1. Quarterly Review of the Economy Annual Subscribers (Seminars & Journal) (M/04/052)

2. India Policy Forum 2004* (Annual USAID, Ford Foundation, Citigroup, SBI Conference & Journal) and HDFC Bank (G/03/007)

3. Policy Research Networking to Strengthen Asian Development Bank and Ministry Policy Reforms: Macroeconomic Group of Finance, Government of India, New Delhi (M/03/046)

4. Assessing an Alternative Medium-term Confederation of Indian Industries (CII) Growth Scenario for the Indian Economy (M/05/066)

5. Economic Analysis and Forecast of India Hochtief Air Port GmbH and its partners (M/05/063) Priramal Holdings Ltd. and Larsen and Toubro (L&T) Ltd.

6. Quarterly Reports for the Embassy of Embassy of Japan, New Delhi Japan, New Delhi (M/04/052)

7. Issues related to the Agreement on Ministry of Commerce, Government of India Agriculture (AoA) in the Doha Round (A/02/007)

8. Dynamics of a Global System of Trade United Nations Conference on Trade and Preferences: Consequences for India* Development (UNCTAD) (M/04/051)

9. New WTO-Compatible Export Directorate General of Foreign Trade, Promotion Scheme Replacing DEPB Scheme Government of India (I/05/034)

10. Achieving the Growth Potential of Ministry of Finance, Government of India Indian Industry: The Role of Government Interventions* (M/05/062)

11. Study on Revamping the Memorandum of Department of Public Enterprises, Understanding (MoU) System Government of India (I/03/028)

* An asterisk indicates programme/project completion as on/before the financial year ending on March 31, 2005.

National Council of Applied Economic Research [15] Annual Report 2004-05

Programme Sponsor/Partner 12. Establishing a Think Tank in Oman Ministry of Commerce and Industry, Government of the Sultanate of Oman (M/05/061)

13. Assessing State-level Economic Performance The Canadian International Development in India: Developing Econometric Models Agency (CIDA) for State Economies* (M/02/024)

14. Uttar Pradesh Development Report Planning Commission of India (I/03/025)

15. Chhattisgarh State Development Report* Planning Commission of India (I/02/017)

16. Centre for Infrastructure and Regulation United Nations Development Programme (I/01/013) (UNDP) and Department of Economic Affairs, Ministry of Finance, Government of India

17. Efficiency, Equity and Access in Indian Delegation of the European Commission to Infrastructure: Blending Competition and India, Bhutan, the Maldives, Nepal, and Regulation Sri Lanka (I/05/035)

18. India Rural Infrastructure Report Sir Ratan Tata Trust (G/01/001)

19. Telecom - Universal Service Obligations Administrator, Universal Service Obligation (Benchmarking of Subsidies) Fund, Department of Telecommunications. (I/04/033)

20. Review of Subsidies Drawn from the Administrator, Universal Service Obligation Universal Service Obligation Fund Fund, Department of Telecommunications. (I/05/033)

21. Domestic Civil Aviation in India: A Ministry of Civil Aviation, Government of India Preview for a Dynamic Sector (M/03/039)

22. Economic Impact of Interlinking of Task Force on Interlinking of Rivers Rivers Programme (M/03/040)

23. Economic Gains of Cargo Movement Inland Waterways Authority of India, through Inland Water Transport Ministry of Shipping, Government of India (I/05/036)

24. Payment Solutions for Modernising R&P Management Communication Pvt. Ltd. Economies and funded by Visa International

[16] National Council of Applied Economic Research Activities 2004-05

Programme Sponsor/Partner 25. India Science Report* Indian National Science Academy, Government (S/03/011) of India

26. E-Readiness Assessment of States 2003–04* Department of Information Technology, (I/03/029) Government of India

27. Critical Evaluation of Community National Informatics Centre (NIC) Information Centres (CICs) in the Northeast: Achievements and Prospects* (I/04/030)

28. Sectoral Study of the Indian Automobiles Tariff Commission, Ministry of Commerce Sector* and Industry (M/02/034)

29. Tourism Satellite Account for India Ministry of Tourism, Government of India (M/03/048)

30. Issues in Defence Contracts Ministry of Defence (MoD), Government of (M/03/041) India, New Delhi

31. Synergising Maruti Udyog Limited with Maruti Udyog Limited the Economic Environment (M/03/047)

32. Comprehensive Study to Assess the Petroleum Planning and Analysis Cell, Ministry Genuine Demand and Requirement for of Petroleum and Natural Gas Superior Kerosene Oil (SKO) (M/04/056)

33. A Study of State Policies Affecting Competition Commission of India Competition-Passenger Transportation Sector

34. Competitiveness of the Beer Industry Tecnova Global Ltd, funded by SAB Miller in Andhra Pradesh (M/04/053)

35. Competition in Electricity Generation Central Electricity Regulatory Commission (I/04/031) (CERC)

36. Comprehensive Study of Demand for National Council for Cement and Building Cement Materials, New Delhi (M/04/049)

37. Snap Survey of Registered Dealers/ Department of Excise and Taxation, Government Manufacturers of Punjab (I/05/032)

National Council of Applied Economic Research [17] Annual Report 2004-05

Programme Sponsor/Partner 38. District-wise Export Potential Survey in Ministry of Industry (Government of West West Bengal Bengal) (M/05/065)

39. Agricultural Trade Liberalisation and Australian Centre of International Agricultural Domestic Market Reforms in Indian Research (ACIAR), Australian Government Agriculture (M/05/060)

40. Liberalising Domestic Agricultural British High Commission, New Delhi Markets: Gains for India (M/05/069)

41. Exports of Value-added Products Agricultural and Processed Food Export from the Agricultural Sector: Impediments Development Authority (APEDA), New Delhi and Strategies for the Future (A/02/005)

42. Issues in Rural Development* South Asia Network of Economic Research (M/03/030) Institutes (SANEI)

43. Land Market, Land Access and Rural DFID-HTS Development Limited, United Development of India Kingdom (S/04/013)

44. Policy Reforms in the Sugar Sector: Ministry of Food and Consumer Affairs, Implications for the Gur and Khandsari Government of India Industry (M/02/004)

45. Access to Rural Finance* The World Bank, Washington D.C. (M/03/037)

46. Kisan Credit Card Scheme: Impact, Reserve Bank of India (RBI), Mumbai Weaknesses and Further Reforms* (A/02/009)

47. Assessing the Impact of Rural Ministry of Rural Development, Government of Development Programmes in Mangan India District of Sikkim (A/02/008)

48. Climate Change and Agriculture: South Asian Network of Economic Research Effects on India and other Developing Institutes (SANEI) Countries* (M/03/029)

[18] National Council of Applied Economic Research Activities 2004-05

Programme Sponsor/Partner 49. Development of Pricing & Taxation as World Wide Fund for Nature - India a Tool towards Clean (Less Carbon Intensive) Energy* (M/04/050)

50. Rural Economic and Demographic National Institutes of Health (NIH), Survey (REDS) Bethesda, MD (S/01/002)

51. Understanding the Dynamics of Chronic Poverty Research Centre (CPRC) Poverty: The Persistent and the Transient (A/03/010)

52. Research for Chronic Poverty Research CPRC India, Indian Institute of Public Centre India (CPRCI) Administration, New Delhi (M/04/057)

53. India Programme of Research on National Institutes of Health and Human Human Development 2003–07 Development, Bethesda, MD. Additional (H/04/021) Support from the World Bank, Washington D.C.

54. Human Capital Formation and South Asia Network of Economic Research Economic Growth in India: A CGE Analysis* Institutes (SANEI) (H/03/015)

55. Rapid Facility Survey of Infrastructure Department of Women and Child Development at ICDS Centers* (DWCD), Ministry of Human Resource (H/02/012) Development (HRD)

56. An Evaluation of Functioning of Health Ministry of Health and Family Welfare Sub-centres in Selected States of India* (H/03/019)

57. National Aids Control Organisation United Nations Development Programme (NACO) - Socio-economic Impact of (UNDP) HIV/AIDS in India (H/03/017)

58. Study of Public Health Services in Institute for Social and Economic Change, Karnataka Bangalore (M/04/054)

59. Indo-Norwegian Programme of Royal Norwegian Embassy, New Delhi Institutional Cooperation (NORAD)

National Council of Applied Economic Research [19] Annual Report 2004-05

Mr. P. Shome, Advisor to Finance Minister, Government of India, International Monetary Fund Chief Economist , IDFC Asset Management Corporation Ltd. Chairman Vijay Kelkar, Member, Planning Commission Abhijit Sen, and , Reserve Bank of India Deputy Governor Rakesh Mohan, at the NCAER-NBER Neemrana Conference, January 18-20, 2005.

[20] National Council of Applied Economic Research Activities 2004-05

GROWTH, TRADE, AND ECONOMIC MANAGEMENT*

1. Quarterly Review of the Economy Sponsor: Annual Subscribers

This subscription-based service comprises a Quarterly Review of the Economy, a quarterly Business Expectations Survey (BES), a monthly newsletter (MacroTrack) and quarterly State of the Economy seminars. The Quarterly Review of the Economy aims at providing assessments on macro-economic models, leading indicators, and the BES which assesses the economy to generate a Business Confidence Index (BCI). MacroTrack provides information and analysis on major trends in the economy, industry and finance. The State of the Economy seminars comprise presentations by the NCAER team and commentaries by invited experts. Subscribers to the Quarterly Review and other experts also make presentations on specific topics related to the Indian economy. The contents of the Quarterly Review are available to subscribers both electronically as well as in printed form.

Project Team: Devendra Kumar Pant, Rajesh Chadha, Anil Sharma, Anushree Sinha, Sanjib Pohit, S.K.N. Nair, Kanhaiya Singh, Sunil K. Sinha, Saurabh Bandyopadhyay, Khursheed Anwar Siddiqui, Devender Pratap, Pooja Sharma, Payal Malik, Sambasiva Rao, Rachna Sharma, and Anjali Tandon

Expert Commentators at the Quarterly Review Seminars in 2004-05

Prof. Deepak Lal, University of California, Los Angeles (UCLA) Prof. B.B. Bhattacharya, Institute of Economic Growth Mr. T. N. Ninan, Business Standard Mr. Vaskar Saha, Central Statistical Organisation Dr. Pronab Sen, Planning Commission Dr. Saumitra Chaudhuri, ICRA Limited Dr. , The Telegraph Dr. Arun Goyal, Academy of Business Studies

Special Presentations

Dr. S.R. Kalsi, India Meteorological Department Mr. Soutrik Ganguli, Reliance Industries Mr. Abhijit S. Vaidya, SBI Capital Markets Mr. R.S. Prasad, Task Force on Interlinking of Rivers Programme Dr. Ajay Shah, Ministry of Finance Mr. Manish Ghosh, COMSET MAX

* An asterisk indicates programme/project completion as on/before the financial year ending on March 31, 2005.

National Council of Applied Economic Research [21] Annual Report 2004-05

2. India Policy Forum 2004* Sponsors: USAID, Ford Foundation, Citigroup, SBI and HDFC Bank

The first India Policy Forum (IPF) Conference was held at NCAER, New Delhi, on March 26-27, 2004, with funding support from the Ford Foundation, USAID, Citigroup, State Bank of India, and HDFC Bank. Dr. Stanley Fischer, Vice- Chairman of Citigroup and Member, IPF Advisory Panel, delivered the first annual IPF lecture on 'India in the World Economy'. The inaugural issue Planning Commission Deputy Chairman Montek Singh Ahluwalia launching the of the India Policy Forum journal inaugural issue of the India Policy Forum journal. NCAER Director-General Suman Bery, was published in January 2005 NCAER President and Member of Parliament Bimal Jalan, and Brookings Institution (please see Publications). President Strobe Talbott, were also present on the occasion at ASSOCHAM House, New Delhi, on February 7, 2005.

Project Team: Suman Bery, Pradeep Srivastava, and Anjali Malhotra

3. Policy Research Networking to Strengthen Policy Reforms: Macroeconomic Group Sponsors: Asian Development Bank and Ministry of Finance, Government of India

Policy research papers on Macroeconomic Management and Government Finances are being commissioned/ written. These will be peer reviewed and serve as a vehicle for dissemination workshops. The NCAER is co-managing one of the several thematic groups under an ADB-Finance Ministry initiative intended to stimulate relevant policy research among Indian academics, and to present the results of the work to other shareholders.

Project Team: Sunil K. Sinha, Shashanka Bhide, Devendra Kumar Pant, and Kanhaiya Singh

4. Assessing an Alternative Medium-term Growth Scenario for the Indian Economy Sponsor: Confederation of Indian Industries (CII)

Alternative medium-term growth scenarios are being prepared for the Indian economy, under various assumptions. The study also focuses on the poverty, employment and income distribution profile under these scenarios. A draft report has been submitted.

Project Team: Devendra Kumar Pant, Shashanka Bhide, and K.A Siddiqui

[22] National Council of Applied Economic Research Activities 2004-05

5. Economic Analysis and Forecast of India Sponsor: Hochtief Air Port GmbH and its partners Priramal Holdings Ltd. and Larsen & Toubro (L&T) Ltd.

To assess long-term growth prospects for the Indian economy and its major constituent states. By way of background, a synoptic view of the economy (including planning experiences, recent policy changes and the economic performance of emerging sectors) has been provided to understand its future potential in terms of advantages and weaknesses. The study also seeks to view current changes in the world economy, global integration, and formation of bilateral economic relations whilst placing the Indian economy in that context. The model used is divided into a two-point estimation, based on the presence of trend and cyclical components of the long series of GDP and the forecasts derived thereof are depicted separately for the trend, and the trend and cycle together.

Project Team: Saurabh Bandyopadhyay, Samir K. Mondal, Toposmito Sengupta, and Pradip Kumar Biswas

6. Quarterly Reports for the Embassy of Japan, New Delhi Sponsor: Embassy of Japan, New Delhi

To prepare four reports for the Embassy of Japan to be submitted at the end of each quarter during the financial year (FY) 2004–05. These were 'Japanese Foreign Direct Investment in India', 'Major Trade Partner Countries of India: A Comparative Analysis', 'Special Economic Zones (SEZs) in India', and 'Privatisation through Disinvestment in India'.

Project Team: Rajesh Chadha, Pooja Sharma, and Abhishek Akhouri

7. Issues related to the Agreement on Agriculture (AoA) in the Doha Round Sponsor: Ministry of Commerce, Government of India

This work is a follow-up to earlier studies completed for the Ministry of Commerce on the implications of the World Trade Organisation (WTO) Agreement on Agriculture (AoA). The main objectives are to write papers, make presentations and provide regular inputs to the ministry during negotiations on various issues related to the AoA.

Project Team: Anil Sharma

8. Dynamics of a Global System of Trade Preferences: Consequences for India* Sponsor: United Nations Conference on Trade and Development (UNCTAD)

Computable general equilibrium (CGE) modelling analysis was used to assess the likely impact on India of the mutual grant of trade preferences across the developing member countries of the Global System of Trade Preferences (GSTP). The analysis reveals that India stands to gain through a uniform 50 per cent mutual tariff reduction on goods trade. Gains to India increase when China also joins the GSTP group and offers 50 per cent reduction in its tariffs on mutual basis. Also, while preferential trade arrangements may be welfare-enhancing for the member countries involved, these welfare gains are considerably smaller than those resulting from open regional trade liberalisation. Moreover, these arrangements often involve elements of trade diversion and, therefore, may be detrimental to some non-member countries/regions. It has been emphasised in this paper that

National Council of Applied Economic Research [23] Annual Report 2004-05 there is need to explore comprehensive economic co-operation (GSTP-CEC) among member countries, which requires serious and detailed analysis.

Project Team: Rajesh Chadha, Devender Pratap, Pooja Sharma, and Anjali Tandon

9. New WTO-Compatible Export Promotion Scheme Replacing DEPB Scheme Sponsor: Directorate General of Foreign Trade, Government of India

The Duty Entitlement Passbook Scheme (DEPB), that came into existence in April 1997, applies to more than 50 per cent of Indian exports. Structured to offset the incidence of customs duty incurred on inputs in execution of exports, the scheme has lots of infirmities and has been dubbed WTO-incompatible. The NCAER is making an effort to re-structure the DEPB, whereby concerns under the Agreement on Subsidies and Countervailing Measures (ASCM) can be addressed, along with ensuring that the Indian exporter is not disadvantaged in the global market due to indirect taxes. The new scheme proposes reimbursement of prior stage cumulative indirect taxes using the economic tool of the Input-Output table. The inputs on the legal section have been provided by Economic Laws Practice (Mumbai) to the NCAER core team. A draft report was submitted on March 31, 2005.

Project Team: R.Venkatesan, M.R. Saluja, Poonam Munjal, Rupa Malik, Reeta , and Rakesh Srivastava

10. Achieving the Growth Potential of Indian Industry: Role of Government Interventions* Sponsor: Ministry of Finance, Government of India

The study reviewed the economy's strengths and weaknesses from the standpoint of growth potential achievement. It identified weaknesses or constraints at the 'generic' level and also at selected 'sectoral' levels. The immense scope to absorb unemployed labour into labour-intensive manufacturing sectors, including readymade garments, leather and leather products and food processing, is yet to be fully exploited. Small-scale reservation for various sectors of production continues to dampen animal spirits in favour of improving skill, scale, capital and technology in these sectors. The taxation system continues to cascade down thanks to a multiplicity of central and state taxes. The study provided estimates of forward and backward linkages of the selected sectors.

Project Team: Shashanka Bhide, Rajesh Chadha, K.A. Siddiqui, Devendra Pratap, Anjali Tandon, and Tanaya Prasad

11. Study on Revamping the Memorandum of Understanding (MoU) System Sponsor: Department of Public Enterprises, Government of India

The purpose of this study was two-fold: (i) to examine whether the MoU system continues to be intrinsically worthwhile or needs to be replaced by a different system, and if found worthwhile, (ii) to effect improvements in it. The concern with the MoU as an instrument arose because 40 per cent of the enterprises had been graded excellent. While it was tempting to have a common framework consisting of static and dynamic parameters to evaluate all public sector enterprises (PSEs), a certain amount of heterogeneity had to be recognised - especially with regard to enterprises belonging to the social, financial services, consulting and trading sectors. A factor analytic approach was adopted, which incorporated all financial, and productivity indicators in a static parameter

[24] National Council of Applied Economic Research Activities 2004-05 category. Integrating the analytical study, the perceptions and the iterative discussions, recommendations were arrived at to strengthen the MoU as an instrument so that it reflected both productivity and financial performance of enterprises.

Project Team: R.Venkatesan, Dripto Mukhopadhyay, Bibek Ray Chaudhri, Aditi Mitra, and Priya Rai 2004-05

12. Establishing a Think Tank in Oman Sponsor: Ministry of Commerce and Industry, Government of the Sultanate of Oman

The objective is to undertake a feasibility study for establishment of a think tank in Oman dedicated to policy relevant socio-economic research. An MoU has been finalised and project implementation is expected to begin in September 2005.

Project Team: Suman Bery and Pradeep Srivastava Abbreviations/Acronyms

13. Assessing State-level Economic Performance in India: Developing Econometric Models for State Economies* Sponsor: The Canadian International Development Agency (CIDA)

Developed to assess and forecast performance of the economies of six selected north Indian states - Uttar Pradesh, Madhya Pradesh, Rajasthan, Haryana, Punjab and Himachal Pradesh - over the medium term, the models were validated by conducting simulations with new data and are capable of medium term forecasts given continuous data updating and periodic re-estimation of equations.

Project Team: Kanhaiya Singh, Rachna Sharma, and Bibhuti Dudeja

14. Uttar Pradesh Development Report Sponsors: Planning Commission of India

The Planning Commission, along with a number of specialist agencies, began work on the Uttar Pradesh State Development Report during 2000–01 to create a comprehensive information base for the state and bring out implementable strategies. From 2000–01 onwards 12 consulting agencies worked on 17 separate topics. In 2003, NCAER was given the task of assembling the Report and collating key findings. The report was submitted in two volumes, the first of which discusses the general trends of the Uttar Pradesh economy, brings out the key issues in the manufacturing, tertiary and agriculture sectors and suggests macroeconomic strategies for overall development and attracting private investment. The second volume elaborates on the status of 16 identified sectors and details policy initiatives and strategic options to overcome constraints to growth. The findings indicate that UP is a low-growth productivity economy, threatened by unsustainable debt, wide-ranging regional disparity and over-dependence on rain-fed agriculture. The financial condition of the state has been in a precarious condition and must be improved by cutting revenue expenditures, while at the same time generating other means of receipts.

Project Team: Kanhaiya Singh, Rupa Malik, Rachna Sharma, Reeta Krishna, Y. Venkataramana, and Rakesh Srivastava

National Council of Applied Economic Research [25] Annual Report 2004-05

15. Chhattisgarh State Development Report* Sponsor: Planning Commission of India

The study focused on the budgetary and fiscal position, macroeconomic issues, and state-level reforms. Chhattisgarh has rich mineral resources, a huge forest cover, low debt, and enjoys the advantages of being a newly-created state. However, the lack of industrialisation hinders its movement on to a high-growth track, as does dependence on conventional wisdom which encourages rice farming and capital-intensive industry. The state lacks physical as well as human capital and should, therefore, seek to attract investment as well as highly skilled human resources.

Project Team: Kanhaiya Singh, Rajesh Chadha, Rachna Sharma, and Sachin Pathak

International Monetary Fund First Deputy Managing Director Anne O. Krueger, NBER President & Chief Executive Officer Martin Feldstein, Finance Minister P. Chidambaram, and NCAER President and Member of Parliament Bimal Jalan in discussion, during the NCAER-NBER Neemrana Conference, January 18-20, 2005.

[26] National Council of Applied Economic Research Activities 2004-05

INVESTMENT CLIMATE, PHYSICAL AND ECONOMIC INFRASTRUCTURE*

16. Centre for Infrastructure and Regulation Sponsor: United Nations Development Programme (UNDP) and Department of Economic Affairs, Ministry of Finance, Government of India

A dedicated Centre for Infrastructure has been set up at NCAER under the aegis of this programme. Its concluding activity, under UNDP funding, is the compilation of a Status Report on Infrastructure Services in India. The Report will look at the role of infrastructure facilities to explain the differences in levels of socio-economic development across different Indian states. The methodology is the building of district-wise composite indices of socio-economic development and infrastructure stocks in the first stage, and estimating the statistical association between these two indices in the second. Finally, in order to bring out the role of local factors, selected districts will be studied in detail. The need for such a Centre, backed by NCAER's resources and research strengths, was identified some five years ago. Financial support was extended under the UNDP funded Economic Reforms Programme. The Work Plan approved by the funding agency has been implemented over the last three years and included two international conferences on the power and telecom sectors devoted to the theme of industry structure and competition.

Project Team: S.K.N. Nair, Saumen Majumdar, Payal Malik, Sambasiva Rao, K. Jamal Khan, Vineta Kanwal, Nandini Acharya, and Ramneet Goswami

17. Efficiency, Equity and Access in Indian Infrastructure: Blending Competition and Regulation Sponsor: Delegation of the European Commission to India, Bhutan, the Maldives, Nepal, and Sri Lanka

This programme activity has been jointly prepared by the Centre for Infrastructure and Regulation, NCAER and the Centre for Economic and Policy Research, London under the European Union's EU-India Cross Cultural Programme. It examines issues relating to competition and regulation in infrastructure industries and the financial sector. The European experience in the practice of policy and in providing analytical insights will be examined, and relevance to the Indian context highlighted. The study is a collaborative effort between three research institutions in Europe and NCAER. The Centre for Economic and Policy Research (CEPR), London, UK, Institut d'Economie Industrelle (IEI), Toulouse, France and the European Centre for Applied Research in Economics and Statistics (ECARES), Brussels, Belgium will collaborate and undertake research, policy dialogue and dissemination activities. The programme will be spread over a period of two years.

Project Team: Saurabh Bandyopadhyay, Suman Bery, Shashanka Bhide, Rajesh Chadha, Samantak Das, Dripto Mukhopadhyay, Saumen Majumdar, Sanjib Pohit, and Sambasiva Rao

18. India Rural Infrastructure Report Sponsor: Sir Ratan Tata Trust

To ensure a better flow of infrastructure services to the rural population, this study attempts to assess rural infrastructure (telecom, power, roads and transport, drinking water and sanitation) and evaluate investment trends to help policy recommendations using data from primary and secondary sources. The final draft report

* An asterisk indicates programme/project completion as on/before the financial year ending on March 31, 2005.

National Council of Applied Economic Research [27] Annual Report 2004-05 has been submitted to the Sir Ratan Tata Trust. Following several dissemination workshops, it is proposed to publish the report incorporating comments received.

Project Team: S.K.N. Nair, D.B. Gupta, Jyotsna Bapat, and S.K. Bathla

19. Telecom – Universal Service Obligations (Benchmarking of Subsidies) Sponsor: Administrator, Universal Service Obligation Fund, Department of Telecommunications

As part of the telecom sector reforms, a non-lapsable Universal Service Obligations (USO) Fund has been set up through central legislation, with the aim of ensuring universal access by funding non-remunerative telecom services in rural areas. The project seeks to support the selection process of universal service providers for different services and regions through a transparent bidding process. The support to this selection activity is provided through determining fair amounts of subsidy, calculated on the basis of economic and technical data, which are then used as benchmarks for bids. With the finalisation of subsidy benchmarking for providing rural private phones (DELs) in a total of 1685 identified non-remunerative service areas nation-wide, work has been completed for five of the six categories of services taken up for subsidy support. The remaining item - subsidy benchmarking of the pilot scheme for setting up rural Public Tele-information Centres - is on hand.

Project Team: S.K.N. Nair, Sambasiva Rao, Vishal Handa, and Archna Jaba

20. Review of Subsidies Drawn from the Universal Service Obligation Fund Sponsor: Administrator, Universal Service Obligation Fund, Department of Telecommunications

The study undertakes a mid-term review of subsidies on Village Public Telephones (VPTS) extended to rural telephony service providers. The VPTs were installed initially without a subscriber trunk dialling (STD) facility and technologies used were unreliable and could not provide trouble-free communications. Subsidies were approved on the condition that STD facilities would be provided within a set time frame and unreliable technologies replaced. These are expected to impact revenue streams, necessitating a review of subsidy levels. Based on sample data on revenues before and after the provision of STD facilities, and taking other relevant technical and economic factors into account, the study will recommend appropriate revision of subsidy benchmarks for each service area in the country.

Project Team: S.K.N. Nair, Sambasiva Rao, and K. Jamal Khan

21. Domestic Civil Aviation in India: A Preview of a Dynamic Sector Sponsor: Ministry of Civil Aviation, Government of India

The aviation industry, post-nationalisation, had been characterised by a duopoly. Following partial deregulation, an oligopolistic trend has gradually taken shape, in terms of fixing fares and in other areas of concern to the industry. Most airlines in India operate on thin margins. Apart from the two national carriers, private airlines have suffered net losses for a couple of years, due to high operating costs. Since the soaring operating expenditure outweighs the operating revenue, the fare structure seeks to compensate net losses. Analysis was done to forecast future market size or the potential market for domestic air passengers. Growth in domestic air traffic for different feasible changes in airfare was captured using revenue-neutrality analysis and in this respect a comparison with Indian Railways (IR) was carried out.

Project Team: Saurabh Bandyopadhyay, Samir K. Mondal, Aananya Sarkar, and Danish Hashim

[28] National Council of Applied Economic Research Activities 2004-05

22. Economic Impact of Interlinking of Rivers Programme Sponsor: Task Force on Interlinking of Rivers

The interlinking of rivers is a major programme endeavour to create additional storage facilities and transfer water from water-surplus regions to drought-prone areas through inter-basin transfers. It is expected to provide additional irrigation in about 35 million hectares and power generation capacity of 30,000 MW. This study evaluates the short and medium-term impact on the economy of the interlinking of rivers.

Project Team: Devendra Kumar Pant, S.K.N. Nair, Khursheed Anwar Siddiqui, Poonam Munjal, Mrinalini Kaur Sapra, and Nupur Pande

23. Economic Gains of Cargo Movement through Inland Water Transport (IWT) Sponsor: Inland Waterways Authority of India, Ministry of Shipping, Government of India

The study aims to identify the nature and quantum of cargo likely to be available for transportation and to estimate economic gains through savings in operator as well as user cost; to ascertain future prospects via use of the IWT mode instead of road and rail. The waterways under study are NW-1 (Ganga- Hooghly rivers from Haldia to Patna) and NW-2 (Brahmaputra river from Dhubri to Sadiya). The study proposes to examine the movement of selected commodities like steel, petroleum, fertiliser, cement, Mr. Y.K. Tanwar, NCAER with Mr. Praful Tayal, Managing Director, Central Inland Water foodgrain, containers, general Transport Corporation, Dr. P. K. Sarkar, Head, Transportation, School of Planning and Architecture and Project Consultant NCAER, and others during the course of execution cargo, etc. of feasibility report on Inland Waterways project at Kolkata, June 25, 2005.

Project Team: R.Venkatesan, Y.K. Tanwar, and Abhijit Maiti External Team: P.K. Sarkar, Professor, School of Planning and Architecture (Consultant), Dr. Veni Mathur, Assistant Professor, Indian Institute of Technology (Consultant)

24. Payment Solutions for Modernising Economies Sponsor: R&P Management Communication Pvt. Ltd., funded by Visa International

The study looked at how much the Indian economy would gain through the use of an electronic payment system (EPS). Some major benefits include time and cost savings, increments in consumption, streamlining of pension accounts, efficiency in government resource allocation. An upper bound estimate of gains is as high as 14 per cent of GDP.

Project Team: Saurabh Bandyopadhyay, Samir K. Mondal, and Aananya Sarkar

National Council of Applied Economic Research [29] Annual Report 2004-05

25. India Science Report* Sponsor: Indian National Science Academy (INSA), Government of India

The first India Science Report was prepared by NCAER for INSA under the guidance of its President and a Steering Committee. By agreement with INSA it focuses on science education, human resources in science and technology (S&T) and public understanding of science. The core of the report is the result of a survey covering these topics, the India Science Survey 2004, perhaps the first such survey conducted in a developing country (even though such surveys have been conducted for several decades in industrial countries). The NCAER team has made every effort to use international classifications and definitions to ensure comparability of these survey results with other international data. The report needs to be seen as an effort towards strengthening the S&T statistical network within the country.

Project Team: Rajesh Shukla, Shankari Banerjee, Rajesh Jaiswal, Saurabh Bandyopadhyay, M.K. Arora, Asha Sharma, Subrato Bandyopadhyay, Sanjay Kumar Dwivedi, Ajit Kumar, Charu Jain, and Ananya Sarkar

26. E-readiness Assessment of States 2003–04* Sponsor: Department of Information Technology, Government of India

Using the networked readiness index framework 2003–04 based on broad parameters (environment for ICT, readiness of key stakeholders and usage of ICT among key stakeholders) states were assessed and then ranked using multi-stage Principal Component Analysis (PCA). Case studies of ICT usage for development in Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu etc. were evaluated on the basis of Sen's and Brown's evaluation framework and buttressed by analysis of sustainability and scalability of the project. The software and hardware sectors were delineated to bring out implications of increased software activity (in terms of new jobs created), and identify drivers of e-preparedness through econometric studies - which could be further used by states to progress in terms of e-preparedness. The ICT sector in the Indian input-output table ranks 30 out of 115 sectors in terms of a derived output multiplier, which is 2.466. Between financial years (FY) 1999–2000 and 2002–03, the software sector increased its output by Rs. 30,000 crore and in the process created 6.8 lakh man-years of employment.

Project Team: R. Venkatesan, Dripto Mukhopadhyay, Bibek Ray Chaudhri, Aditi Mitra, Priya Rai, and Rupa Malik

27. Critical Evaluation of Community Information Centres (CICs) in the Northeast: Achievements and Prospects* Sponsor: National Informatics Centre (NIC)

Users of Community Information Centres (CICs) have benefited immensely in terms of faster and easier communication, saving in transaction costs and exposure to global knowledge. It is very heartening to note that a significant proportion of CIC users have also reported an increase in income levels. Analysis shows that CIC usage is not price sensitive and is essentially need-based. Self-sustainability is possible only through increasing user numbers and needs to be brought about in ways other than price changes. Sustainability depends a lot on proactive awareness programmes and improvement of service delivery capabilities through backward integration with key government departments. At present, a CIC is synonymous with an Internet café for most users and

[30] National Council of Applied Economic Research Activities 2004-05 non-users. Awareness about CICs and services is immensely skewed in favour of relatively higher income groups, those with higher education levels, students and the service class, the younger age group, and primarily the male population. The location of a CIC has a significant bearing on its usage pattern. The study observes that community centres are the best locations for CICs, whereas schools are the least preferred.

Project Team: Dripto Mukhoapdhyay and Samantak Das ( Joint Project Leaders), Reeta Krishna, and Y. Venkataramana

28. Sectoral Study of the Indian Automobiles Sector* Sponsor: Tariff Commission, Ministry of Commerce and Industry

This study looks at evolution, performance and the current policy framework in this sector. Until the 1980s, the Indian automobile industry was heavily controlled and regulated by the government. Very few products were available in each segment, and even those were manufactured in low volumes and with outdated technology. With partially liberalised foreign technical and equity collaborations in commercial vehicles during the 1980s, the market witnessed the entry of new players, offering a new range of superior technology vehicles. The passenger car segment was liberalised in 1993. However, the growth of the automobile sector in India has been partly made possible through protective measures. Significant tariff and non-tariff measures remained in place even during the 1990s. Imports of automobiles were restricted under quantitative restrictions (QRs), and it was only in 2001 that the QRs were lifted after a WTO ruling against India. Though custom tariff rates have generally been declining, import of fully assembled passenger cars attracts a high rate of 60 per cent and that of used cars 115 per cent.

Project Team: Rajesh Chadha, and Abhishek Akhouri

29. Tourism Satellite Account for India Sponsor: Ministry of Tourism, Government of India

The Tourism Satellite Account (TSA) is an accounting framework adopted by the United Nations designed to measure goods and services associated with tourism according to international standards of concepts, classifications and definitions. Consistency in such definitions would permit valid comparisons with other industries and eventually with other countries. With the TSA, government, entrepreneurs and citizens will be better equipped to design public policies and business strategies for tourism and for evaluating their effectiveness and efficiency. The prime objective of the study is to estimate the value added (i.e., the tourism sector's share in the GDP), and employment generated (the tourism sector's share in the nation's total workforce). The Ministry of Tourism, which commissioned NCAER for this study, also constituted an Advisory Committee to oversee and guide NCAER on the development of a TSA for India. The Committee comprises members from the Ministry of Tourism, Central Statistical Organisation, Planning Commission, Ministry of Labour and the Reserve Bank of India. The Interim Report of the study has been submitted to the Ministry and to the members of the Advisory Committee.

Project Team: Pradeep Srivastava, Rajesh Shukla, K.A. Siddiqui, Poonam Munjal, and M.R. Saluja

30. Issues in Defence Contracts Sponsor: Ministry of Defence (MoD), Government of India, New Delhi

National Council of Applied Economic Research [31] Annual Report 2004-05

The study examined the present practices of the MoD, defence public sector enterprises (PSEs) and problems encountered by them in enforcement of exchange rate variation (ERV) clauses in contracts. It was found that the ERV clause should become an integral part of defence contracts awarded to PSUs. The study also examined present MoD and defence PSE practices in obtaining confirmation of bank guarantees.

Project Team: Sunil K. Sinha

31. Synergising Maruti Udyog Limited with the Economic Environment Sponsor: Maruti Udyog Limited

The study examined the characteristics of the compact car market in India and Maruti Udyog's current strengths in it to make recommendations on future strategy.

Project Team: Samantak Das, Dripto Mukhopadhyay, Somnath Mukherjee, Sanjib Pohit, and Sowmya Srinivasan

32. Comprehensive Study to Assess the Genuine Demand and Requirement of Superior Kerosene Oil (SKO) Sponsor: Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas

The study aims to estimate the demand and supply of SKO in different states, and the energy consumption pattern of different types of households for different purposes. A sample survey of 42,000 households, and of around 2,500 retailers and wholesalers of SKO in 23 different states and union territories was undertaken and the field work has been completed.

Project Team: Devendra Kumar Pant, Rajesh Shukla, P.K.Roy, S.K. Dwivedi, Rajesh Jaiswal, Shishir Shekhar, K.A. Siddiqui, M.K. Arora, Tejinder Singh, Asha Sharma, Subrata Bandyopadhyay, Charu Jain, R.S. Landge, K.S. Urs, Piyush Shandilaya, and Rashmi Rastogi

33. A Study of State Policies Affecting Competition–Passenger Transportation Sector Sponsor: Competition Commission of India

To research the emerging area of evolving pro-competition policies at the state level. The study attempts to advocate enhanced competition and institutional reforms to bring about greater competition within the Indian passenger traffic sector across states and also within state boundaries. This would lubricate the efficiency of the development process, whilst not precluding certain sections purely on pro-competition and efficiency considerations.

Project Team: R. Venkatesan, Dripto Mukhopadhyay, Simrit Kaur, Bibek Ray Chaudhri, Rupa Malik, and Reeta Krishna

34. Competitiveness of the Beer Industry in Andhra Pradesh Sponsor: Tecnova Global Ltd., funded by SAB Miller

[32] National Council of Applied Economic Research Activities 2004-05

This study aimed at identifying the trend in tax rates on beer in Andhra Pradesh; the components of ex-factory price; the price-demand relationship and estimation of price elasticity; the optimum revenue neutrality scenario (in which the fall in revenue of the government exchequer, as a result of downward revision of tax rates, will be neutralized after a certain period due to volume gain in sales because of high price sensitivity). Beer turns out to be a highly price-and income-sensitive product. Therefore, the impact of reduction in excise incidence would lead to higher revenue generation to the state exchequer through higher volume impact of consumption. This initial exploration has generated a broader study to estimate a price-demand model of the beer industry in Maharashtra, Uttar Pradesh, Karnataka and Rajasthan for Tecnova.

Project Team: Saurabh Bandyopadhyay, Samir K. Mondal, and Ananya Sarkar

35. Competition in Electricity Generation Sponsor: Central Electricity Regulatory Commission (CERC)

Following the provision of the Electricity Act 2003, the CERC has commissioned NCAER to prepare a Consultation Paper on the subject. The study articulates the need for introducing competition and consumer choice in generation and supply of electricity, and suggests an action plan for this purpose.

Project Team: Gajendra Haldea

36. Comprehensive Study of Demand for Cement Sponsor: National Council for Cement and Building Materials, New Delhi

The study seeks to analyse factors affecting cement demand and to identify policy reforms that would increase cement demand. Its scope includes sector-wise analysis of cement demand; identification of drivers of cement demand; identification of causes of recent decrease in cement demand (including effects of changes in tax structure relevant to cement); projections of cement demand at the national level and comparisons with international consumption of cement; state-wise, sector-wise projections of cement demand over the next five to ten years; and suggestions on ways and means to spur cement demand. It also examines the structure of taxes and levies in neighbouring countries to discover the extent to which India's cement industry does not enjoy a level playing field. Key findings have been submitted and four presentations made to four different groups of interested segments, including the government.

Project Team: Kanhaiya Singh, K.A. Siddiqui, Rachna Sharma, and Y. Venkataramana

37. Snap Survey of Registered Dealers/Manufacturers Sponsor: Department of Excise and Taxation, Government of Punjab

The study estimates the extent of evasion of sales tax in Punjab through the use of both the state's own database and secondary data sources. This is to be supplemented by an appropriate primary survey based on a purposive sampling methodology. The study will also suggest measures that can limit sales tax leakage in the system. Finally, the study reviews the monitoring of transactions adopted by Andhra Pradesh, West Bengal and other states to suggest ways in which Punjab can track dealers who ought to be but are not registered.

National Council of Applied Economic Research [33] Annual Report 2004-05

Project Team: R. Venkatesan, Dripto Mukhopadhyay, M.R. Saluja, Simrit Kaur, Bibek Ray Chaudhri, Rupa Malik, Poonam Munjal, and Reeta Krishna

38. District-wise Export Potential Survey in West Bengal Sponsor: Ministry of Industry (Government of West Bengal)

At present West Bengal has a major share in all-India exports of items like engineering goods, tea, jute, agro-products, small leather products and marine products. By and large, these are all traditional items. If West Bengal exports are to attain a double-digit share in India's exports, efforts are required to diversify the export basket of the state, apart from increasing the exports of traditional items. The prime objective of the study is to assess the district-wise export potential in West Bengal, with reference to traditional items as well as new products and to draw relevant policy conclusions.

Project Team: Samantak Das, Dripto Mukhopadhyay, and Sanjib Pohit

NCAER Director-General Suman Bery, International Monetary Fund Senior Resident Representative Michael Wattleworth, Planning Commission Deputy Chairman Montek Singh Ahluwalia, and P. S. Mehta, Director, Consumer Unity and Trust Society during Dr. 's lecture at NCAER, August 2, 2004.

[34] National Council of Applied Economic Research Activities 2004-05

AGRICULTURE, RURAL DEVELOPMENT AND RESOURCE MANAGEMENT*

39. Agricultural Trade Liberalisation and Domestic Market Reforms in Indian Agriculture Sponsor: Australian Centre of International Agricultural Research (ACIAR), Australian Government

This study, conducted in partnership with scholars at the University of Melbourne, evaluates how agricultural markets in India can be made to work more efficiently while taking into account the economy-wide effects of changes in government intervention and the social effects of the operation of markets. The study will review the main institutional and regulatory interventions in selected agricultural sectors, including state trading enterprises (STEs) and other relevant marketing bodies, and will analyse the extent to which they alter prices, production, consumption, trade and efficiency. It will carry out a review of constraints in the marketing system in selected agricultural sectors and the impacts on prices, production, income, consumption, trade and efficiency through in-depth case studies. It also aims to identify, evaluate and quantify, through the development of suitable industry-specific and economy-wide models, the impact of domestic market and international trade policy reform options on agricultural prices, production, income, consumption, trade and efficiency.

Project Team: Rajesh Chadha, Devender Pratap, Anjali Tandon, and Abhishek Akhouri

40. Liberalising Domestic Agricultural Markets: Gains for India Sponsor: British High Commission, New Delhi

The study will attempt to assess the impact of liberalisation of India's domestic trade in agricultural goods on India's international trade and to increase awareness among key stakeholders in both India and the UK on the potential benefits from domestic and international trade liberalisation in agriculture.

Project Team: Shashanka Bhide, Rajesh Chadha, Devender Pratap, Anjali Tandon, and Abhishek Akhouri

41. Exports of Value-added Products from the Agricultural Sector: Impediments and Strategies for the Future Sponsor: Agricultural and Processed Food Export Development Authority (APEDA), New Delhi

One of the prime reasons for the dismal performance of value-added product exports from the agricultural sector is the gross inadequacy of post-harvest infrastructure. This study assesses levels of processing and value-addition for selected agricultural products. Its other objective is to quantify the additional expenses that exporters of selected products have to bear due to lack of infrastructure and to suggest ways and means to address problems faced by the exporters of value added products (including the levels of assistance required to compensate for these adversities). The draft report is being finalised.

Project Team: Anil Sharma, and Pramod Kumar

* An asterisk indicates programme/project completion as on/before the financial year ending on March 31, 2005.

National Council of Applied Economic Research [35] Annual Report 2004-05

42. Issues in Rural Development* Sponsor: South Asia Network of Economic Research Institutes (SANEI)

This study examines the impact of agricultural liberalisation on wages, local growth potential, production patterns, and consumption and nutrition levels in villages, in the Kaveri delta. It was found that mutual insurance takes place through local networks at the tail end. Fragmentation does not have a significant impact on the efficiency of cultivation. Local economic development is driven by local specialisation and market integration. The study examined the broad drivers of local economic development like the economic base, local specialisation, and market integration. Given the implications for faster productivity, mutual insurance and poverty are examined.

Project Team: Hari Nagarajan, J.P. Singh, and Sonal Vats External Team: Prof. Andrew Foster (Brown University), and Dr. Subbarayan Prasanna (Indian Institute of Management, Bangalore)

43. Land Market, Land Access and Rural Development in India Sponsor: DFID-HTS Development Limited, United Kingdom

The study aims to contribute to the policy debate in the area of broad-based rural development and land policy by studying the functioning of land rental and sales markets and the contribution of these markets to productivity and equity; to address determinants of social welfare and investment in human and physical capital; to examine the patterns of technology adoption, risk diversification and rural non-farm development. The study exploits a unique panel data set of six villages in the tail-end of the Kaveri river in Tamil Nadu.

Project Team: Hari Nagarajan, J.P. Singh, Bastoo Ram, and Sonal Vats

44. Policy Reforms in the Sugar Sector: Implications for the Gur and Khandsari Industry Sponsor: Ministry of Food and Consumer Affairs, Government of India

This study examines the current status of the gur and khandsari industry and suggests policy options to address problems that would arise from liberalisation of the sugar industry. It aims to estimate the number, size and output of khandsari and gur units in selected sugarcane growing states and to examine the existing system of cane supply, pricing, rates of recovery and economics of production of khandsari and gur units. A draft report, 'Policy Reforms in Sugar Sector: Implications for Gur and Khandsari Industry', has been submitted.

Project Team: Anil Sharma, Jatinder Bedi, Animesh Kumar, Tejinder Singh, Amar Sahu, and Sunil Kumar

45. Access to Rural Finance* Sponsor: The World Bank, Washington D.C.

Primary data from two large states, Andhra Pradesh and Uttar Pradesh, was used to assess the extent to which rural households have access to formal finance, and to understand the mechanisms used by them in financing credit needs. Findings reveal that progress in expansion of formal credit in rural areas has been modest at best over the past three decades. Only about 20 per cent households have access to formal credit while almost 80 per cent use informal borrowings. Even households with access to formal credit, typically from government schemes,

[36] National Council of Applied Economic Research Activities 2004-05 borrow informally. Formal lending remains skewed towards those with land, thereby excluding the majority of poorest farmers. Microfinance shows some promise, but remains confined to southern states, and needs to meet the challenge of expanding scale and scope without dilution of quality.

Project Team: Pradeep Srivastava, Rajesh K. Shukla, Reema Dutta, Amit Soni, Asha Sharma, and M.K. Arora

46. Kisan Credit Card Scheme: Impact, Weaknesses and Further Reforms* Sponsor: Reserve Bank of India (RBI), Mumbai

The Kisan Credit Card (KCC) Scheme has spread remarkably fast after 1988-89, but is it simple and effective enough to reduce hassles in borrowing faced by farmers, especially small farmers? The study assessed this and other critical issues: timely availability of production credit; the annual review process; the recovery performance of loans; and finally, the key weaknesses that still remain. Detailed analysis (using both primary and secondary data) and qualitative assessment demonstrated that the scheme had made a significant impact on short-term credit availability from formal sources at the farm level. However, despite several improvements and exceptional progress, many challenges still need to be met if the intended objective of facilitating access to short-term credit to all farmers in the country is to be achieved.

Output: The report has been published as a book: The Kisan Credit Card Scheme: Impact, Weaknesses and Further Reforms. (For details see Publications)

Project Team: Anil Sharma, Shashi Brahmankar, Pramod Kumar, Santosh Kumar, Tejinder Singh and Ajay Sahu

47. Assessing the Impact of Rural Development Programmes in Mangan District of Sikkim Sponsor: Ministry of Rural Development, Government of India

The study examined whether beneficiary selection guidelines were being followed; the manner of funds utilisation; verification of survival of assets created; and finally, the functioning of panchayati raj institutions in the implementation of these programmes. Detailed analysis (using primary and secondary data) and qualitative assessment demonstrates that the poverty reduction record of these programmes is rather modest. Further, the study also highlights instances which indicate that guidelines mandated under various programmes were not fully adhered to. The study, therefore, suggests reforms in the procedure for the selection of beneficiaries, monitoring of programmes and follow-up, co-ordination among various departments involved in their implementation, training of beneficiaries and development of marketing infrastructure.

Project Team: Anil Sharma, Santosh Kumar, and J.P. Gautam

48. Climate Change and Agriculture: Effects on India and other Developing Countries* Sponsor: South Asian Network of Economic Research Institutes (SANEI)

The aim of the study is to determine the impact of climate change on India, using an environment CGE model. The study has attempted to analyse the implications of the sea level rise on India's agriculture, the impact of land degradation due to increased use of land and the role of trade liberalisation in mitigating it. The results expectedly indicate a decline in agriculture as well as economy. With adaptation of new technology, it may be

National Council of Applied Economic Research [37] Annual Report 2004-05 possible to put the land to alternative uses to minimise the negative impact. The study indicates that climate change will have an overall negative impact with India's welfare going down by one percentage point of GNP, other things being equal.

Project Team: Sanjib Pohit, and Sowmya Srinivasan

49. Development of Pricing and Taxation as a Tool towards Clean (Less Carbon-intensive) Energy* Sponsor: World Wide Fund for Nature - India

India's total final consumption (TFC) of energy has gone up significantly over last three decades. Other than a hike in usage, the evidence clearly points to a change in the energy mix: significant changes have been noticed in the usage pattern of industry and transport sectors. The role of a pricing/taxation policy for mitigating carbon emission in India is analysed through model simulation. The industry sector being the focal point of the study, the carbon emission forecast was made for the relevant products: coal, lignite, coke, high-speed diesel oil (HSDO), light diesel oil (LDO), furnace oils, and low sulphur heavy stock (LSHS). The model suggests that reduction in emissions would be greatest in case of coal, followed by coke and HSDO. However, the degree of carbon emission reduction is not substantial enough to suggest that economic instruments (such as carbon taxation) would be the right tool to mitigate emissions. It may be noted that the present study is an indicative one and inferences should be treated with caution.

Project Team: Samantak Das, Dripto Mukhopadhyay, Sanjib Pohit, and Payal Verma

A focus group discussion was organised by Dr. Tarujyoti Buragohain (NCAER) to assess the impact of the National Agricultural Technology Project (NATP) in Mawkriah village, in East Khasi Hills District, Meghalaya on June 14, 2005. Participants were beneficiaries of NATP's 'Integrated Piggery Development Programme'.

[38] National Council of Applied Economic Research Activities 2004-05

HOUSEHOLD BEHAVIOUR, POVERTY, HUMAN DEVELOPMENT, INFORMALITY AND GENDER*

50. Rural Economic and Demographic Survey (REDS) Sponsor: National Institutes of Health (NIH), Bethesda, MD

The main output of this project is a database which forms the third round of a rural panel study to help understand the social, economic, and demographic transition in India since the 1970s. The reference period for the current round is 1999; earlier rounds collected data for time periods ending in 1971 and 1982. Work on the first volume titled, 'Rural Transformations since the Green Revolution' was completed in August 2004, and is awaiting publication.

Project Team: Hari Nagarajan, J.P. Singh, Bastoo Ram, and Sonal Vats External Team: Prof. Mark Rosenzweig (Harvard University) and Prof. Andrew Foster (Brown University)

51. Understanding the Dynamics of Poverty: The Persistent and the Transient Sponsor: Chronic Poverty Research Centre (CPRC)

The objective of the study is to understand the transient and the permanent nature of poverty in India to identify the characteristics responsible for households falling into poverty and its long spells. One Paper, 'Estimating Transient Poverty', has been completed.

Project Team: Hari Nagarajan, Shashanka Bhide, Asha Kapur Mehta, Sonal Vats, and Jaipal Singh

52. Research for Chronic Poverty Research Centre India (CPRCI) Sponsor: CPRC India, Indian Institute of Public Administration, New Delhi

The work uses the REDS panel data on rural households from 1970–71 to 1989–99. Looking at factors that influence the persistence or chronic nature of rural poverty, and also factors that influence exit from poverty. Household data is supplemented by other macro environment data such as village conditions and district level variables drawn from the Census and other sources of information. Data analysis is in progress.

Project Team: Shashanka Bhide, Tanaya Prasad, and Supreet Sondhi

53. India Programme of Research on Human Development 2003–07 Sponsor: National Institutes of Health and Human Development, Bethesda, MD. Additional Support from the World Bank, Washington D.C.

The first stage of this programme aims to collect a second round of an all-India household study, originally fielded in 1993–94 by NCAER. This has required re-contacting households surveyed in 1993–94, as well as add a fresh sample (including urban households) in order to provide accurate estimates of key parameters. A total of 40,000 households will be surveyed for this study. The survey is intended to reveal how the interplay between

* An asterisk indicates programme/project completion as on/before the financial year ending on March 31, 2005.

National Council of Applied Economic Research [39] Annual Report 2004-05 poverty, gender and public policy determines morbidity, mortality, and access to quality facilities. Availability of a premier data source for studying fertility and family planning, school and economic variation in India, captured during a period of rapid social change, will allow scholars to test a variety of theories. Editing/coding, data entry and checking for preliminary consistency has started. The fieldwork is to be completed by July 2005.

Project Team: B.L. Joshi, A. Shariff, Dr. A. Shariff, and Mr. B. L. Joshi with the Jammu & Kashmir field team during field staff training on "India Programme of Research on Human Development" at IMPA Campus, Anupam Tyagi, Srinagar, July 2005. P.K. Ghosh, Abhilasha Sharma, Lipika Das Gupta, Monisha Grover, Moumita Das Gupta, Rupali Subudhi, Rakesh Srivastava, Jaya Koti, Vidya Sagar, Anand Verma, and Kamlesh Pandey

External Team: Professor Reeve Vanneman (University of Maryland), Professor Sonalde Desai (University of Maryland), and Dr. Mitali Sen (University of Maryland)

54. Human Capital Formation and Economic Growth in India: A CGE Analysis* Sponsor: South Asia Network of Economic Research Institutes (SANEI)

To investigate links between human capital and economic growth by developing a CGE model for the Indian economy (with the base-period as 1994-95) and, thereafter, to generate a five-year reference run up to the terminal period (1999-2000), using a recursive dynamic approach. To incorporate a skill transformation function into the interim-period sub-model, which transforms unskilled labour into skilled labour on the basis of investment made in the education sector. Just as investment in physical capital in a particular year is used to update the stock of capital for the subsequent year, investment in the education sector will be used to update the stock of skilled labour for the subsequent year, using the skill transformation function. Finally, to work out policy simulations for increased levels of public investment in education financed in different ways.

Project Team: Basanta K. Pradhan, and Vijay Prakash Ojha

55. Rapid Facility Survey of Infrastructure at ICDS Centers* Sponsor: Department of Women and Child Development (DWCD), Ministry of Human Resource Development (HRD)

Rapid Facility Survey is an offshoot of the recommendations of the nationwide evaluation of the Integrated Child Development Services (ICDS) scheme undertaken by NCAER. The study is an attempt to bring together

[40] National Council of Applied Economic Research Activities 2004-05 disparate information related to infrastructure, supplies and human resources, with inter-state differentials. The information is to assist policy makers, administrators and researchers in assessing and evaluating the information profile of Anganwadi Centres (AWCs). The results are expected to help the government in initiating corrective measures to make the programme more effective. This survey, the largest in terms of coverage, aimed at a national AWC census, covered nearly three lakh AWCs. As per some of the main findings of the study, more than 40 per cent AWCs are neither housed in ICDS buildings, nor in rented buildings, and more than 46 per cent are housed in "pucca" buildings; the average number of children registered at an AWC is 52 boys and 75 girls. More than 90 per cent centres provide supplementary food, 90 per cent pre-school education and 76 per cent weigh children for growth monitoring.

Project Team: Abusaleh Shariff and Rajesh Jaiswal

56. An Evaluation of Functioning of Health Sub-centres in Selected States of India* Sponsor: Ministry of Health and Family Welfare

The focus of this study was to assess the performance of health sub-centres (HSCs) with respect to availability of physical infrastructure, manpower, medicines and equipment, efficacy of service delivery, extent of co-ordination of work and to understand the impact of family welfare programmes. The study also attempted to evaluate services provided for maternal and child health, family welfare, nutrition, immunisation, communicable diseases etc. Data analysis revealed that the spatial spread of HSC villages is quite high. What needs serious consideration and correction is the shortfall in the number of HSCs and the higher average population per HSC. Lack of proper HSC buildings and poor roads is an important constraint in the functioning of HSCs. Shortage of staff is quite high and almost half the HSCs function without a Male Health Worker (MHW). Information collected from the beneficiaries shows that utilisation of health services at HSC level is quite impressive, especially in West Bengal, Tamil Nadu and Punjab. A high percentage of people are satisfied, although satisfaction levels are quite low in tribal-dominated districts. Almost all respondents expressed willingness for better utilisation of services if facilities at HSCs were improved.

Project Team: Rupinder Kaur, Tarujyoti Buragohain, and Shanta Venkatraman

57. National Aids Control Organisation (NACO) – Socio-economic Impact of HIV/AIDS in India Sponsors: United Nations Development Programme (UNDP)

This pioneering study aims to analyse the nature and type of economic impact of HIV/AIDS on households with affected family members, by means of primary data collection in the six highest prevalence states of India. Based on these data it will assist states in designing state-specific strategies to alleviate problems faced by HIV/AIDS affected households. It is also investigating the relationship between HIV/AIDS and distribution of income and wealth, changes in employment, education and health. To assess sectoral impact it will measure current and potential impact of HIV/AIDS on different sectors of the economy including (but not limited to) agriculture, tourism and the health care industry. It will develop an integrated model incorporating specific sectors, associated labour force participation and effects on productivity to evaluate and estimate the impact of HIV/AIDS on GDP. Field survey/coding work of four states is over. Field survey in two states is expected to be completed by mid-June 2005.

Project Team: Basanta K. Pradhan, Ramamani Sundar, M. R. Saluja, Vijay Prakash Ojha, Shalabh Kumar Singh, Sampurna Singh, Abhilasha Sharma, and S.K. Mondal

National Council of Applied Economic Research [41] Annual Report 2004-05

58. Study of Public Health Services in Karnataka Sponsor: Institute for Social and Economic Change (ISEC), Bangalore

The study aims at providing a set of recommendations to improve the delivery of preventive, population-based health services in the state of Karnataka. The services under public health covered by the study are water supply, sanitation, waste disposal, vector control and health regulations. The study also addresses the issue of generating demand for such services. A draft report has been submitted.

Project Team: Shashanka Bhide (as part of the ISEC team)

59. Indo-Norwegian Programme of Institutional Cooperation Sponsor: Royal Norwegian Embassy, New Delhi

The programme which began in 1990, is now in its five-year long second phase following a second bilateral agreement in November 2001, and a grant of NOK 50 million. So far 42 projects have been approved, and 26 completed. The projects cover wide and diverse areas such as detection and evaluation of bacterial agents causing diarrhoea among children, finding more effective alternatives to the WHO (World Health Organisation)- sponsored oral rehydration solution (ORS), paper and pulp-making technology, offshore geo-technical engineering, engineering geophysics and rock mechanics, sustainable development of arid lands, application of solar and wind-power technology in automobiles, deep sea-bed mining, tunnelling technologies, selective breeding of rohu fish, environmental geotechnology, discovery of new drugs and vaccines against TB, reservoir modelling for enhanced oil recovery, soil and groundwater contamination and remedial measures, natural resources, ecology, earthquake engineering, etc.

The priority areas of this second extended phase include environment-related technologies and natural resource management. The social sector includes health (particularly HIV/AIDS), child labour/education and women-related issues. In addition, projects in sectors (such as offshore technology, fisheries and aquaculture, forestry, food processing, energy, etc.), where Norway has competence of international standards will also be considered.

Project Team: Suman Bery and P.L. Narayana

[42] National Council of Applied Economic Research Activities 2004-05

Public Affairs Lectures August 2, 2004: Dr. Kaushik Basu, Carl Marks Professor and Director, Programme on Comparative Economic Development, Cornell University Prospects for the Indian Economy: Curbing Poverty and Boosting Growth (In co-operation with Consumer Unity and Trust Society, Jaipur) Chair: Mr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission Discussant: Dr. George Assaf, Regional Director, United Nations Industrial Development Organisation United Nations Industrial Development Organisation Regional Director George Assaf, At: NCAER, New Delhi. Planning Commission Deputy Chairman Montek Singh Ahluwalia, and Dr. Kaushik Basu, Organised by D.K. Pant, and Carl Marks Professor and Director, Program on Comparative Economic Development, Cornell University during a lecture by Dr. Basu at NCAER, New Delhi, August 2, 2004. colleagues from CUTS, Jaipur

September 28, 2004: Prof. Ross Garnaut AO, Professor of Economics, Australian National University Third Sir John Crawford Lecture: Different Reform Paths: India, Australia and China (In co-operation with the Australia India Council, Canberra and the India International Centre, New Delhi) Chair: Dr. Bimal Jalan Introduction of Speaker: by H.E. Ms. Penny Wensley AO, High Commissioner for Australia At: India International Centre, NCAER Director-General Suman Bery, with Ross Garnaut, AO, Professor of Economics, Australian National University, NCAER President and Member of Parliament Bimal New Delhi. Organised by D.K. Jalan, and Australian High Commissioner Penny Wensley, AO at the third Sir John Pant and Shashanka Bhide Crawford Lecture seminar held at the India International Centre, New Delhi, September 28, 2004.

National Council of Applied Economic Research [43] Annual Report 2004-05

November 4, 2004: Dr. Martin Ravallion, Research Manager, World Bank, USA Pro-Poor Growth? China and India Compared Chair: Dr. Y.K. Alagh, Sardar Patel Institute of Economics and Social Research, Ahmedabad Discussant: Dr. Surjit Bhalla At: NCAER, New Delhi. Organised by Abusaleh Shariff

January 14, 2005: Dr. Anne O. Krueger, First Dy. Managing Director, International Monetary Fund (IMF) Shared Experience: What Reforming Economies have in Common Chair: Mr. N.K. Singh, Chairman, Management Development Institute, Gurgaon At: NCAER, New Delhi. Organised by Anil Sharma

NCAER Director-General Suman Bery, Graham Ingham, and Chairman Management Development Institute N. K. Singh, with Ms. Anne O. Krueger, First Deputy Managing Director, International Monetary Fund on the occasion of her lecture at NCAER, New Delhi on January 14, 2005. Conferences, Seminars & Symposia

April 27, 2004: NCAER-SEWA Collaborative Programme on the Garment Industry Dissemination Workshop of Joint Research Project

At: the India Habitat Centre, New Delhi. Organised by Ratna M. Sudarshan and Rupinder Kaur

May 4–5, 2004: Video Conference: The Experience of Latin American Countries in Infrastructure Sector Reform: A Dialogue with India Presentations by: Latin American and World Bank experts which covered, in the main, the designing of infrastructure concessions for toll roads, power and water and sanitation projects and contract renegotiations. Indian participants contributed by reviewing the ongoing Indian reforms and comparing it with the Latin American Country experience. Participants at the Delhi end included administrators, project developers (both public and private sector), legal experts, academics and media persons In: Delhi (about 40 participants), connected by video link up to Washington and Buenos Aires. Organised by Payal Malik with colleagues from the World Bank at the World Bank Office.

August 17, 2004: Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000 (Seminar) By: Andrew Foster, Professor and Head, Department of Economics, Brown University, USA At: NCAER, New Delhi. Organised by Hari Nagrajan

[44] National Council of Applied Economic Research Activities 2004-05

December 13, 2004: Poverty and Inequality: Trends in India in the 1990s Presentations by: O(x)us Fund Management Director Surjit Bhalla, and Member Planning Commission Abhijit Sen Discussant: Shubhashish Gangopadhyay, Director, Indian Development Foundation Chaired by: Kirit Parikh, Member, Planning Commission At: NCAER, New Delhi. Organised by Suman Bery, Shashanka Bhide, and Rajesh Chadha

January 14, 2005: The NBER Guest Lectures In conjunction with the Neemrana Conference, selected NBER Fellows delivered workshops on their current research before an invited audience of young researchers from Delhi Institutes.

Ann Harrison Recent Research in International Trade Alan L. Gustman Labour Markets and Older Workers Richard Clarida International Monetary Economics Robert Feenstra New Product Varieties, the Terms of Trade and the Measurement of Real GDP At: NCAER, New Delhi. NBER Guest Lectures organised by Anil Sharma

January 18–20, 2005: NCAER-NBER Sixth Annual Neemrana Conference on the Indian Economy Indian researchers, policy makers, regulators and other professionals came together with a team of NBER scholars, led by Prof. Martin Feldstein, to interact informally on a range of economic research and policy issues confronting India, the US and the global economy. Union Finance Minister P. Chidambaram attended the inaugural session and Rajasthan Chief Minister Vasundhara Raje Scindia, attended the valedictory session.

At: Neemrana Fort Palace Resort in Rajasthan and NCAER, New Delhi. Organised by Anil Sharma, NCAER and Mihir Desai, National Bureau of Economic Research (NBER), Cambridge MA with administrative support of both organisations.

NCAER Director-General Suman Bery in discussion with National Bureau of Economic Research (NBER) President & Chief Executive Officer Martin Feldstein and Planning Commission Deputy Chairman Montek Singh Ahluwalia, at the NCAER-NBER conference at Neemrana, January 18-20, 2005.

National Council of Applied Economic Research [45] Annual Report 2004-05

February 9–10, 2005: Stakeholder Fora on Implementation of Regulation and Competition in Urban Water and Electricity Sectors: The French Experience in a European Perspective and Lessons for India The objective of this workshop was to share and exchange experiences at a critical point in India's own path for implementing competition and market integration in its utilities. The economic reform process is moving India from a public-sector-based mode of infrastructure provision towards a more competitive, independently regulated model of infrastructure provision. This is in line with efforts in the European Union (EU) in general, and France in particular, toward the reorganisation of their industries and utilities over the last two decades. Exchanging views and analysing the shift would contribute to the policy-making debate and reform implementation procedures on both sides. At: India International Centre, New Delhi. Organised by Shashanka Bhide

February 11, 2005: Risk, Return and the Optimal Design of a Pension System (Seminar) Presented by: Dr. Sheetal K. Chand, Independent Consultant and Guest Researcher, University of Oslo At: NCAER, New Delhi. Organised by Rajesh Chadha

March 3, 2005: Agricultural Trade Reform under the Doha Agenda with Particular Reference to India (Seminar) Key Presentation: World Bank Lead Economist Will Martin Session Chair: Abhijit Sen (Member, Planning Commission) Discussants: Mr. R. Gopalan, Ministry of Commerce; Mr. Hardeep Singh, Cargill (India) Ltd. At: NCAER, New Delhi. Organised by Anil Sharma with colleagues from the World Bank

March 7, 2005: Towards High-value Agriculture and Vertical Coordination: Implications for Agri-Business and Small Holders Symposium At: National Agricultural Science Centre, New Delhi. Organised by Suman Bery and Hari Nagarajan in collaboration with the International Food Policy Research Institute (IFPRI), Washington, D.C. and Delhi; and the Confederation of Indian Industry (CII)

NCAER Director-General Suman Bery, greeting Rajasthan Chief Minister Vasundhara Raje Scindia, on the occasion of the NCAER-NBER Neemrana conference, at Neemrana in Rajasthan from January 16–18, 2005.

[46] National Council of Applied Economic Research Finances 2004-05

Finances

Annual Accounts 2004–05

Management Report on Financial Reporting for 2004–05

The management of the National Council of Applied Economic Research has the responsibility for preparing the accompanying financial statements and for their integrity and objectivity. The statements were prepared in accordance with generally accepted accounting principles applied on a consistent basis and are not misstated due to material fraud and error. The financial statement includes amounts that are based on management’s best estimates and judgements. Management also prepared other information in the Annual Report and is responsible for its accuracy and consistency with the financial statements.

Thakur Vaidyanath Aiyar & Co., independent auditors, appointed by the Governing Body, have audited the Council’s financial statements. Management has made available to the auditors all the Council’s financial records and related data, as well as the minutes of the General Body and Governing Body meetings. Furthermore, management believes that all representations made to the auditors during its audit were valid and appropriate.

Management of the Council has established and maintains a system of internal control and provides reasonable assurance as to the integrity and reliability of the financial statements, the protection of assets from unauthorized use or disposition, and the prevention and detection of fraudulent financial reporting. The system of internal control provides for appropriate division of responsibility. An Office Management System has been developed and all payment requests are now made through the electronic system duly approved by concerned authorities. This also allows respective Project Leaders to exercise control over expenditure incurred on their projects. Management continually monitors the system of internal control for compliance. The Council has introduced an internal auditing programme that independently assesses the effectiveness of the internal controls and recommends possible improvements thereto. Management will strive to supplement the existing internal controls through an appropriate management reporting system.

Management also recognizes its responsibility for fostering a strong ethical climate so that the Council’s affairs are conducted according to the highest standards of personal and corporate conduct. This responsibility is characterised and reflected in the Council’s code of conduct, which includes the necessity of ensuring open communication within the Council; avoiding potential conflicts of interests and compliance with all domestic and foreign laws, including those relating to financial disclosure and the confidentiality of proprietary information.

Net Ram Verma Suman Bery Acting Head – Finance & Accounts Director-General

New Delhi 20 July, 2005

National Council of Applied Economic Research [47] Annual Report 2004-05 2004–05 Value of Projects Previous Year Current Year Current Year Next Year forward from received in in forward to Nos. Rs. lakh Nos. Rs. lakh Nos. Rs. lakh Nos. Rs. lakh Year Projects brought New projects Projects completed Projects carried Financial Year 2004–05Year Financial 2003–04 Year Financial 34 35 1,708.69 1,459.20 28 26 1,006.50 1,096.16 27 27 972.93 846.67 35 34 1,742.26 1,708.69

[48] National Council of Applied Economic Research Finances 2004-05 ) 7 5 8 8 3 . . 4 . 5 2 6 2 6 3 ( 0 0 (Rs. lakh) , , 1 1

) 2 8 6 9 7 . . 8 . 4 8 3 7 9 2 7 8 1 (

) 7 9 2 7 2 . . 5 . 7 2 5 9 8 8 8 9 (

1 9 8 1 4 7 . . . 2 3 8 1 8 2 9 8

) 4 5 9 9 6 . . 2 . 7 4 3 2 8 4 8 7 (

2 3 5 3 0 3 . . . 7 4 3 3 5 8 9 0 , 1

1 7 8 1 7 . 8 . . 4 9 3 3 7 1 8 9

Financial Analysis 9 6 3 1 7 6 . . . 8 0 2 8 3 4 5 6 Period : 1995–96 to 2004–05

6 2 8 1 1 2 . . . 2 0 2 3 1 8 4 5

1 9 8 9 9 8 9 . . . 3 7 3 7 6 9 4 3 e r u s t e i u d n n e e v p e * Includes payment to external organisations for data collection. x s E R u : Project fees have been booked as per new income recognition system from financial year 2002–03 onwards.

l l l p e a a t r t t o u o o Particulars 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02 2002–03 2003–04 2004–05 T T S Interest on InvestmentsFeeson Project IncomeInterest 44.35 44.17 44.95 59.28 Sale of Publications 58.72 62.96 58.99 53.85 56.50 61.58 Other Cost*Cost 361.16 421.22 533.68 767.41 Salary 884.28 638.94 895.92 791.51 751.57 634.55 Non-Salary 4.36 Depreciation 58.02 41.19 44.06 71.39 73.10 72.40 57.95 57.93 82.01 56.29 5.70 Fund 147.87 Grants 237.13 145.25 188.06 214.86 277.92 387.78 528.93 239.41 647.91 233.71 341.82 238.70 326.32 544.71 688.26 315.31 551.27 619.37 547.31 Corpus 8.10 FundOther InvestmentsAssets (Gross) 15.80 8.98 Borrowings 8.99 12.32 90.32 Capital Assets 67.00 49.52 32.27 38.81 37.10 36.16 Capital 21.25 230.47 129.77 230.47 305.47 141.09 167.47 207.14 Fixed 318.57 5.65 227.55 416.38 936.55 260.39 336.99 508.43 788.72 307.58 336.99 913.85 18.93 5.30 336.99 4.30 4.10 2.72 9.29 5.70 51.58 5.30 148.28 10.35 159.60 407.20 446.78 Increase in Project Revenue 452.19 475.13 569.19 497.04 523.39 551.66 RevenueTotal Surplus to 336.73 309.73 413.18 453.86 Salary to Project Revenue 8.90 – 455.01 -2.09% 455.01 941.48 481.04 800.70 918.72 15.80% 7.19 16.63% 65.66% 15.64% 26.70% – 22.50 65.98% 43.80% 240.00 6.76% 13.01 72.66% 225.00 215.10 201.24 193.67 189.47 124.98 15.23% 8.73% 68.92% -27.74% 73.27% 8.00% 23.88% 85.25% -5.52% -5.05% 69.65% -15.57% 9.14% 82.41% 41.19% -9.53% 86.25% -15.98% 76.82% -3.56% N

National Council of Applied Economic Research [49] Annual Report 2004-05

Income & Expenditure for the year 2004–05 and Budget for the year 2005–06 (Rs. lakh) Particulars 2003–04 2004–05 2005–06 Actual Revised Budget Actual Budget INCOME Fees – Project & Seminar 634.56 922.00 895.92 1,214.67 Government Grant 50.00 50.00 50.00 50.00 Membership & Subscription 2.72 2.72 2.56 2.46 Sale of Publications 22.50 22.50 13.01 15.00 Interest on Investments 36.19 32.00 33.18 28.97 Transfer from Corpus – Interest 25.39 26.00 25.81 26.55 Miscellaneous Income 3.56 3.50 5.39 1.00 Total 774.92 1,058.72 1,025.87 1,338.65 EXPENDITURE NCAER Staff Salaries & Allowances 339.24 343.95 360.15 362.30 Salary to Contractual Staff 85.50 82.92 81.27 42.87 Payment to Professionals & Survey/Data Gathering 120.10 300.75 240.52 381.34 Travelling & Conveyance 58.94 59.63 98.60 109.69 Council's Publications 31.62 20.27 8.21 36.17 Rent, Rates & Taxes 0.84 1.50 1.46 0.50 Postage, Telegram & E-Mail Expenses 6.06 5.60 14.55 5.00 Telephone & Fax Expenses 8.84 8.51 8.93 9.40 Stationery & Printing 16.12 20.96 51.23 15.57 Repairs & Maintenance 20.71 21.05 16.73 72.78 Periodicals & Journals 16.17 16.00 16.95 17.00 Entertainment Expenses 1.77 6.32 3.75 3.70 Advertisement Expenses – 1.00 0.45 0.50 Car Running & Maintenance Expenses 3.57 4.00 4.04 6.00 Interest on Bank Overdraft 10.62 7.00 6.20 7.00 Payment to Auditors 0.71 1.32 0.28 0.28 Depreciation on Fixed Assets 36.16 30.00 32.27 35.00 Legal Expenses 1.96 1.95 1.68 2.00 Maintenance of Computers & Stat. Lab Charges 15.65 20.00 9.80 23.72 Miscellaneous Expenses 0.32 3.02 0.83 2.50 ICICI Loan Expenses & Other finance charges 2.49 2.00 1.83 10.00 Workshop & Seminar 32.77 28.71 4.70 58.51 Staff Welfare & Development Expenses 3.61 3.00 4.80 3.50 Staff Recruitment Expenses 0.02 0.60 – 2.90 Water & Electricity 33.95 38.00 37.69 42.25 Prior Period Adjustment (net) 1.27 – – – Amount written off 16.71 – 34.61 – Amortisation of Premium on Investments 0.30 – 0.30 0.30 Estimated Cost of Incomplete Project 13.29 – 1.50 – Exchange Fluctuation – Loss 18.98 – 9.49 – Fixed Assets Written off 0.49 – 1.78 – Provision for Doubtful Debts – Projects – – 1.50 – Provision for Old Publication Stock – – 6.25 – Total 898.78 1,028.06 1,062.35 1,250.78 Surplus / (Deficit) for the year (123.37) 30.66 (36.48) 87.87 Add: Balance from Previous year 17.44 (105.93) (105.93) (142.90) Balance available for Appropriation (105.93) (75.27) (142.41) (55.03) Appropriation: – Transferred to Capital Account – – – – – Purchase & Sale of Assets – 64.76 – 103.61 – Purchase of Library Books – 8.45 – 8.45 – Repayment of ICICI Loan – 30.00 – 30.00 Net Surplus Transferred to Balance Sheet (105.93) (178.48) (142.41) (197.09)

[50] National Council of Applied Economic Research Finances 2004-05

Cash Flow Statement For the year ended on March 31, 2005

(Rs. lakh) Particulars Amount Amount

Opening Cash & Bank Balances – Cash & Bank Balances 31.11 – Bank Overdraft – 31.11

INFLOW – Operation-Receipts 842.59 – Govt of India-Grant-in-Aid 50.00 – Sale of Publications 15.66 – Membership & Subscription 3.00 – Interest Received 96.86 – Investment - Maturity 190.12 – Misc. Receipts 14.96 1,213.19

Total Funds Available 1,244.30

OUTFLOW – Payment of ICICI Loan/Laptop Loan 33.63 – Expenses 1,002.10 – Purchase of Assets 39.90 – Library Expenses (including Books) 32.20 – Investments 212.90 1,320.73

Balance (76.43)

Closing Cash & Bank Balances – Cash & Bank Balances 34.54 – Bank Overdraft (110.97) (76.43)

National Council of Applied Economic Research [51] Annual Report 2004-05

Thakur Vaidyanath Aiyar & Co. 212, Deen Dayal Marg, Chartered Accountants New Delhi—110 002 New Delhi, Kolkata, Mumbai, Chennai, Phones: 23236958–60, 23237772 Patna, Chandigarh, and Hyderabad Fax: 23230831 E-mail: [email protected]

Auditors’ Report The Members National Council of Applied Economic Research, New Delhi.

We have audited the Statement of Financial Position of National Council of Applied Economic Research, New Delhi, as at 31st March, 2005 and also the Income and Expenditure Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

Further to the above, we state that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (ii) In our opinion, proper books of account as required by law have been kept by the Council so far as appears from our examination of those books; and (iii) The Balance Sheet and the Income & Expenditure Account dealt with by this report are in agreement with the books of account.

In our opinion and to the best of our information and according to explanations given to us, the financial statements read with notes to the accounts (Schedule 14), particularly Note No. 2(d) regarding non-provision of Rs. 27,93,760/- for leave encashment, give a true and fair view in conformity with the accounting principles, generally accepted in India:

(a) in the case of Statement of Financial Position, of the state of affairs of the Council as at 31st March, 2005; and (b) in the case of Income and Expenditure Account, of the deficit for the year ended on that date.

For Thakur Vaidyanath Aiyar & Co. Chartered Accountants

(Ranvir Sinha) Place: New Delhi Partner Date: July 20, 2005

[52] National Council of Applied Economic Research Finances 2004-05

Statement of Financial Position as at 31st March, 2005

Particulars Schedule As at As at 31st March, 2005 31st March, 2004 Rs. Rs. SOURCES OF FUNDS Corpus 1 93,654,546 91,384,546 Capital Assets Fund 2 33,698,549 33,698,549 Grant Funds (Restricted) 3 530,275 530,275 Income & Expenditure Account (14,290,354) (10,642,526) Loan Funds 4 20,124,441 12,498,334 Total 133,717,457 127,469,178

APPLICATION OF FUNDS Fixed Assets (Net) 5 14,872,722 15,895,607 Investments 6 94,148,000 91,872,000 Net Current Assets 7 24,050,700 19,025,857 Miscellaneous Expenditure – 646,035 675,714 Premium on Investments (to the extent not written off or adjusted ) Total 133,717,457 127,469,178 Accounting Policies and 14 Notes to the Accounts

Schedules Nos. 1 to 14 form an integral part of the Accounts.

As per our report of even date Dr. Bimal Jalan Suman Bery For Thakur, Vaidyanath Aiyar & Co. President Director-General Chartered Accountants

(R. Sinha) Dr. Sunil Kumar Sinha Net Ram Verma Partner Acting – Registrar & Secretary Acting – Head ( Fin. & Accounts)

NEW DELHI Date: July 20, 2005

National Council of Applied Economic Research [53] Annual Report 2004-05

Income & Expenditure Account For the year ended on 31st March, 2005 Particulars Schedule 2004–05 2003–04 Rs. Rs. INCOME Fees – Projects and Seminars 89,591,821 55,146,952 Grant in Aid – CIDA – 89,591,821 8,308,532 63,455,484 Government of India – Grant in-Aid 5,000,000 5,000,000 Membership Subscription 256,000 272,000 Sale of Publications 1,301,315 2,250,112 Interest 8 3,317,776 3,618,509 Transfer from Corpus – Interest (Refer Schedule 1) 2,580,898 2,539,742 Other Income 9 539,423 356,365 Total 102,587,233 77,492,212

EXPENDITURE Personnel (Including Performance Linked 10 44,606,049 42,730,339 Incentive Pay, Rs. 47,16,679/-) Survey/Data Gathering 16,272,674 5,516,221 Travelling & Conveyance 9,860,213 5,902,603 Consultants’ Fees 7,946,729 7,434,402 Cost of Council’s Publications 11 820,537 2,487,598 Interest & Finance Charges 12 803,457 1,312,656 Amounts Written Off 3,460,535 1,670,142 Fixed Assets Written Off 177,889 – Provision for Doubtful Debts – Projects 150,000 – Provision for Old Publication Stock 624,718 – Amortisation of Premium on Investments 29,679 29,679 Exchange Fluctuation Loss 949,074 1,897,870 Depreciation 3,227,041 3,616,024 Other Expenses 13 17,306,466 17,280,919 Total 106,235,061 89,878,453 Deficit for the year (3,647,828) (12,386,241) Add : Balance brought forward (10,642,526) 1,743,715 Balance Carried to Balance Sheet (14,290,354) (10,642,526) Accounting Policies and Notes to the Accounts 14

Schedules Nos. 1 to 14 form an integral part of the Accounts.

As per our report of even date Dr. Bimal Jalan Suman Bery For Thakur, Vaidyanath Aiyar & Co. President Director-General Chartered Accountants

(R. Sinha) Dr. Sunil Kumar Sinha Net Ram Verma Partner Acting – Registrar & Secretary Acting – Head ( Fin. & Accounts) NEW DELHI Date: July 20, 2005

[54] National Council of Applied Economic Research Finances 2004-05

Schedules Forming Part of the Statement of Financial Position

Schedule 1 – Corpus

As at Add: Grant Add: Interest Less : Interest Plough Back As at 1st April, Received for the year transferred to to Corpus 31st March, 2004 during 2004–05 Income & Fund 2005 the year Expenditure Account Rs. Rs. Rs. Rs. Rs. Rs. Corpus – 1 Government of India Grant –1994–95 9,550,000 – – – – 9,550,000 Ford Foundation Grant 8,075,779 – – – – 8,075,779 General Fund 16,323,017 – 2,504,523 2,504,523 – 16,323,017 33,948,796 2,504,523 2,504,523 33,948,796

Corpus – 2 Sir Ratan Tata Trust Grant 8,081,000 – 587,568 517,568 70,000 8,151,000

Corpus – 3 Ford Foundation Grant 25,844,750 – 2,189,756 1,089,756 1,100,000 26,944,750

Matching Contribution* Canadian International Development Agency 8,000,000 – – – – 8,000,000 Government of India Grant -2002-03 6,500,000 – – – – 6,500,000 Reserve Bank of India 7,500,000 – – – – 7,500,000 Interest Ploughed Back on 1,510,000 – 2,073,574 973,574 1,100,000 2,610,000 Matching Contribution 57,435,750 – 4,850,898 2,580,898 2,270,000 59,705,750 Total 91,384,546 – 7,355,421 5,085,421 2,270,000 93,654,546

*Refer to Note 2 (I) – Schedule 14

Schedule 2 – Capital Assets Fund

As at As at 31st March, 2005 31st March, 2004 Rs. Rs.

As per last Accounts 33,698,549 33,698,549

National Council of Applied Economic Research [55] Annual Report 2004-05

Schedules Forming Part of the Statement of Financial Position

Schedule 3 – Grant Funds (Restricted)

Grant Total Grant As at Received Spent during As at Received 1st April, 2004 during the year the Year 31st March, 2005 Rs. Rs. Rs. Rs. Rs.

Fulbright NCAER Grant 472,168 – – 472,168 – HDFC Limited 200,000 – Sir Ratan Tata Trust 400,000

IT Upgradation Grant 58,107 – – 58,107 – l. D. R. C., Canada 3,814,150 – ICICI Limited 1,150,000 – HDFC Limited 1,000,000 – GE Capital Service India 600,000 – ILFS Limited 500,000 – DSP Merril Lynch Limited 400,000 Total 530,275 ––530,275

Schedule 4 – Loan Funds

Particulars As at As at 31st March, 2005 31st March, 2004 Rs. Rs. Secured – ICICI Bank Limited – Bank Overdraft 11,096,665 – (Secured by negative lien on Fixed Deposits and Investments from Corpus) – ICICI PFS Limited 27,776 333,334 (Secured by hypothecation of Laptop Computers) (Repayable within one year – Rs. 27,776)

Unsecured – ICICI Bank Limited (Interest Free) 9,000,000 12,000,000 (Repayable within one year – Rs. 3,000,000)

– Lease Liability – 165,000

Total 20,124,441 12,498,334

[56] National Council of Applied Economic Research Finances 2004-05

Schedules Forming Part of the Statement of Financial Position

Schedule 5 – Fixed Assets

GROSS BLOCK DEPRECIATION NET BLOCK Description As at Additions Sale/ As at As at For the Sale/ As at As at As at 1st April Adjustment 31st March 1st April year Adjustment 31st March 31st March 31st March 2004 2005 2004 2004-05 2005 2005 2004 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Land (Leasehold) 49,330 ––49,330 ––––49,330 49,330

Building 1,613,130 ––1,613,130 869,443 18,592 – 888,035 725,095 743,687

Electric Installations 2,027,360 44,600 – 2,071,960 1,137,350 93,461 – 1,230,811 841,149 890,010

Diesel Generator Set 443,820 ––443,820 396,165 9,531 – 405,696 38,124 47,655

Statistical & Laboratory 270,156 ––270,156 256,648 ––256,648 13,508 13,508

EDP System 29,365,507 1,750,709 488,917 30,627,299 26,102,812 1,887,672 195,567 27,794,917 2,832,382 3,262,695

Office Equipment 1,587,084 49,900 38,650 1,598,334 1,056,494 81,264 5,798 1,131,960 466,374 530,590

BPL EPABX Tele System 445,360 ––445,360 256,278 18,908 – 275,186 170,174 189,082

Air Conditioner & Refrigerators 5,525,557 167,476 – 5,693,033 2,429,188 326,384 – 2,755,572 2,937,461 3,096,369

Library Books 6,101,806 735,331 4,232 6,832,905 2,765,322 407,182 2,210 3,170,294 3,662,611 3,336,484

Motor Car 794,342 ––794,342 561,950 46,478 – 608,428 185,914 232,392

Furniture & Fixtures 6,191,054 85,784 39,108 6,237,730 3,012,679 322,767 3,911 3,331,535 2,906,195 3,178,375

Misc. Fixed Assets 241,327 ––241,327 182,120 14,802 – 196,922 44,405 59,207

Office Equipments (Leased Assets) 510,000 – 510,000 – 243,777 – 243,777 ––266,223

Total 55,165,833 2,833,800 1,080,907 56,918,726 39,270,226 3,227,041 451,263 42,046,004 14,872,722 15,895,607

Previous Year 52,338,898 3,330,618 503,683 55,165,833 36,085,046 3,616,024 430,844 39,270,226 15,895,607 –

National Council of Applied Economic Research [57] Annual Report 2004-05

Schedules Forming Part of the Statement of Financial Position

Schedule 6 – Investments

Description Corpus Others Total Corpus 1 Corpus 2 Corpus 3 Total (SRTT) Ford Matching Foundation Contribution Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Long Term Investments (Unquoted)

– Fixed Deposits with Public 3,000,000 4,218,000 3,527,000 2,300,000 13,045,000 230,000 13,275,000 Financial Institutions

– Deposits with Public Sector 170,000 525,000 2,875,000 3,570,000 1,300,000 4,870,000 Enterprises

– Deposits with Housing – 3,500,000 – 6,900,000 10,400,000 2,100,000 12,500,000 Development Finance Corporation Trust

– 8.63% Power Grid Corporation Bonds ––15,000,000 – 15,000,000 – 15,000,000

– 8% Indian Railway Finance ––5,000,000 – 5,000,000 – 5,000,000 Corporation Bonds

– 8% RBI Saving (Taxable) Bonds 28,329,000 263,000 2,117,000 12,535,000 43,244,000 259,000 43,503,000

Total 31,329,000 8,151,000 26,169,000 24,610,000 90,259,000 3,889,000 94,148,000

Previous Year 31,329,000 8,075,000 25,069,000 23,510,000 87,983,000 3,889,000 91,872,000

Note: Investments amounting to Rs.58,728,000 Under Negative lien with ICICI Bank Limited against overdraft facility of Rs. 15,000,000 (Balance as on March 31, 2005 is Rs. 11,096,665.13).

[58] National Council of Applied Economic Research Finances 2004-05

Schedules Forming Part of the Statement of Financial Position

Schedule 7 – Net Current Assets

Particulars As at 31st As at 31st March, 2005 March, 2004 Rs. Rs. Rs. Rs. CURRENT ASSETS Cash & Bank Balances – Cash in Hand (inclusive of Postage Stamps) 41,249 97,607 – Cheques in Hand 2,198,225 820,900 Balances with Scheduled Banks – In Savings Accounts 1,209,570 1,903,764 – In Current Account 6,396 3,455,440 288,362 3,110,633 Interest Accrued – On Investments – Accrued and Due – 446,961 – Accrued but not due 2,273,189 3,363,117 – Others 3,790 2,276,979 3,790 3,813,868 Sundry Debtors (Unsecured considered good) – Debtors Considered Good 18,476,469 – Debtors Considered Doubtful 150,000 18,626,469 – Less : Provision for Doubtful Debts (150,000) Total 18,476,469 23,558,829 – Publications Debtors 39,188 22,386 – Membership Subscription 10,500 18,526,157 45,000 23,626,215 Other Receivables (Unsecured Considered Good) – Planning Commission 372,008 – – Asian Development Bank 14,325 – – Guru Govind Singh Refineries Ltd. 69,643 69,643 – University of Maryland 2,439,913 2,895,889 – 69,643 Project – Work in Progress 13,686,628 12,310,463 Publications Stock 2,232,401 Less : Provision for Old Publications Stock 624,718 1,607,683 2,119,966 Advances & Deposits (Unsecured considered good) – Advances – Advances to staff & Field offices 236,416 143,683 – Other Advances 289,262 64,490 – TDS Recoverable 2,724,012 2,316,058 – Networking Institutions 252,462 – – Prepaid Expenses 1,582,476 434,923 – Deposits 158,508 5,243,136 157,535 3,116,689 Total Current Assets 47,691,912 48,167,477 LESS : CURRENT LIABILITIES Subscription Received in Advance 144,951 69,075 Project Fees Received in Advance 13,992,410 18,091,437 Liabilities for Expenses 7,742,344 7,455,659 Provision for Estimated Cost on Incomplete Projects 352,528 1,328,755 Due to Provident Fund Trust 17,763 377,268 Other Liabilities 1,391,216 23,641,212 1,819,426 29,141,620 Total Current Liabilities 23,641,212 29,141,620 Net Current Assets 24,050,700 19,025,857

National Council of Applied Economic Research [59] Annual Report 2004-05

Schedules Forming Part of the Income Statement Schedule 8 – Interest Particulars 2004–05 2003–04 Rs. Rs. On Investments – Corpus 2,504,523 2,866,046 – Others 410,362 414,661 On Short Term Deposits 149,924 320,165 On Others 252,967 17,637 Total 3,317,776 3,618,509

Schedule 9 – Other Income Particulars 2004–05 2003–04 Rs. Rs. Profit on Sale of Fixed Assets 2,210 – Liabilities no longer required written back 89,886 22,802 Miscellaneous Income 447,327 333,563 Total 539,423 356,365

Schedule 10 – Personnel Particulars 2004–05 2003–04 Rs. Rs. Salaries & Allowances 28,176,558 28,795,152 Performance Linked Incentive Pay 4,716,679 – Performance Variable Allowance – 1,827,416 Payment to Temporary / Casual Workers 8,127,130 8,550,366 Provident Fund Contribution 2,122,956 1,978,730 Provision for Leave Salary 1,000,000 1,348,045 Staff Welfare Expenses 462,726 230,630 Total 44,606,049 42,730,339

Schedule 11 – Cost of Council's Publications Particulars 2004–05 2003–04 Rs. Rs. Opening Stock 2,119,966 1,858,405 Add : Printing Expenses 932,972 2,749,159 3,052,938 4,607,564 Less : Closing Stock 2,232,401 2,119,966 Total 820,537 2,487,598

[60] National Council of Applied Economic Research Finances 2004-05

Schedules Forming Part of the Income Statement

Schedule 12 – Interest & Finance Charges

Particulars 2004–05 2003–04 Rs. Rs. Rs. Rs. Interest – On Bank Overdraft 620,225 1,062,883 – On Secured ICICI PFS Ltd. Loan 56,188 61,299 – Others 16,128 692,541 24,188 1,148,370 Finance Charges – On Unsecured ICICI Bank Ltd. Loan 98,548 148,768 – Bank Charges 12,368 110,916 15,518 164,286 Total 803,457 1,312,656

Schedule 13 – Other Expenses

Particulars 2004–05 2003–04 Rs. Rs. Rent, Rates & Taxes 146,095 84,417 Water & Electricity 3,768,907 3,395,399 Stationery & Printing 5,123,304 1,612,046 Postage, Telegram & Telephones 2,347,965 1,501,692 Repairs & Maintenance 1,673,543 2,078,865 Periodicals & Journals 1,695,258 1,616,829 Computer Services 979,581 1,614,689 Estimated Cost on Incomplete Projects 150,000 1,328,755 Car Running & Maintenance 403,639 357,372 Entertainment Expenses 374,794 179,874 Staff Recruitment Expenses – 1,800 Audit Fees 28,000 21,000 Loss on Sale of Fixed Assets – 48,726 Staff Development Expenses 17,101 130,271 Advertisement 44,720 – Seminars & Workshops 470,255 3,276,593 Miscellaneous Expenses 83,304 32,591 Total 17,306,466 17,280,919

National Council of Applied Economic Research [61] Annual Report 2004-05

Schedules Forming Part of the Accounts

Schedule 14 – Accounting Policies and Notes to the Accounts

1. Accounting Policies a) Revenue and Expenditure are recognised on accrual basis. However, income pertaining to self-sponsored projects and subscription to Journals are recognised on receipt basis. b) The project fee is recognised in proportion to the cost incurred on a project assuming that the cost incurred represents corresponding progress of the project. Where the cost incurred is out of proportion, for revenue recognition the actual progress is taken into account. c) Contributions received from Co-Sponsor of the seminars conducted by the Council are accounted for as fee for seminars. d) Recurring Grant from Government of India and Corpus Grant are recognised in the year of receipt. e) Investments are classified as long term and short term. Long-term investments are stated at cost unless there is a permanent diminution in the value. Short-term investments are valued at cost or net realisable value whichever is less. In respect of unquoted interest bearing bonds, the premium paid at the time of acquisition is written off over the remaining period to the date of maturity of the bonds. f ) Fixed Assets are stated at historical cost less depreciation. g) Depreciation is provided on the Written Down Value method, as per the rates given below, keeping 5% as residual value of the assets:

Fixed Assets Rate (%) Building 2.50 Electric Installation, EPABX System, Air Conditioners & Refrigerators, Library Books and Furniture & Fixture 10.00 Office Equipment 15.00 Diesel Generator Set, Statistical laboratory, and Motor Car 20.00 Miscellaneous fixed Assets 25.00 EDP Systems 40.00 h) Stock of Publications has been valued at cost. i) Retirement Benefits: (1) Gratuity Liability has been funded through a Trust, which in turn has taken a Group Gratuity Scheme policy with LIC of India. (2) Provident Fund liability towards employees is also funded through a Trust and the Council's contribution is paid to the Trust on accrual basis.

[62] National Council of Applied Economic Research Finances 2004-05

2. Notes to the Accounts a) For ascertaining income from project fee in terms of the accounting policy mentioned in para 1(b) above, per day charges for different categories of research staff have been used to calculate personnel cost. These per day charges are intended to cover common facilities and other overheads. The Council has been taking steps to establish systems whereby the cost incurred for various projects can be calculated more accurately. b) Sundry debtors are subject to confirmation. In the opinion of the management they are all good for recovery except to the extent they have been shown as doubtful. c) Capital Assets Fund represents amount appropriated over the years towards fixed assets of the Council. In the absence of any balance available for appropriation in the Income & Expenditure Account for the year ended on March 31, 2005, the amount Rs. 5,568,451 (Previous Year 9,160,268) required to be transferred to Capital Assets Fund has not been transferred. d) On the basis of actuarial valuation, the liability not provided towards leave encashment is Rs. 27,93,760. In the opinion of the management, the provisioning is adequate considering that 65 of the total 93 regular employees of the Council (as on March 31, 2005) eligible for the benefit are on three year contracts whose tenure at the Council is difficult to predict. The management has taken the view that, if needed, the provision can be raised gradually to meet the actuarial valuation. e) A sum of Rs. 47,16,679 has been provided on account of Performance Linked Incentive Pay payable to regular staff for the Financial Year 2004–05. f ) As per terms and conditions of the Sir Ratan Tata Trust Grant for library up-gradation, a minimum sum of 10% of interest earned during the year, along with the unutilized amount of income is to be ploughed back to Corpus every year. Accordingly Rs. 70,000 (Previous Year Rs. 61,000) has been transferred to the Corpus Rs. 517,568 was spent on Library books, periodicals and journals out of total interest income of Rs. 587,568. g) There is a balance of Rs. 14,601.30 in the FCRA designated bank account-INR (Savings) with scheduled bank, representing funds / grants unutilised as on 31st March, 2005. h) The exemption granted to the Council u/s 10(23C) (iv) of the Income Tax Act, 1961 was valid up to March 31, 2004. Application for extension of exemption has been submitted to the Income Tax Authorities for the year 2004–2005 and onwards. i) Ford Foundation has given the Council an endowment grant of US $ 5,00,000 (Rs. 24,302,750). As per terms of the above grant, the Council is to raise an additional amount of US $ 1,000,000 within a period of five years w.e.f. April 2002. Council has so far raised an amount of Rs. 24,610,000 equivalent to US $ 566,920 (inclusive of interest plough back on matching grant). As per the terms of Ford Foundation Grant, if the Council does not fulfil the matching requirement within the stipulated period, the Foundation shall review the Council's position and determine, whether (i) the grant term and matching period should be extended, (ii) the unmatched portion of the grant funds should be returned to the Foundation, or (iii) other options should be pursued.

National Council of Applied Economic Research [63] Annual Report 2004-05 j) The cost of the fixed assets sold during the year is as certified by the management. k) Classification of Corpus 1 to 3 represents, General Corpus : Corpus – 1, Sir Ratan Tata Trust : Corpus – 2, Ford Foundation & Matching Contribution from other Agencies as per the terms of the Ford Foundation as : Corpus – 3, respectively. l) The previous year's figures have been regrouped/rearranged wherever considered necessary.

As per our report of even date Dr. Bimal Jalan Suman Bery For Thakur, Vaidyanath Aiyar & Co. President Director-General Chartered Accountants

(R. Sinha) Dr. Sunil Kumar Sinha Net Ram Verma Partner Acting – Registrar & Secretary Acting – Head ( Fin. & Accounts)

NEW DELHI Date: July 20, 2005

[64] National Council of Applied Economic Research Appendices 2004-05

Appendices

National Council of Applied Economic Research [65] Annual Report 2004-05

[66] National Council of Applied Economic Research Appendix I 2004-05

Appendix I Activities of Senior Research Staff

SUMAN BERY  Evaluation Advisory Committee, Planning Email: [email protected] Commission  Board of Advisors, Centre for Analytical Selected Positions Finance, Indian Business School, Hyderabad

Member Lectures/ Presentations/ Major Conferences  All-India Management Association (AIMA) Chairperson  National Council  Committee on Public Governance Meeting on Investment for Development Project,at  Confederation of Indian Industry (CII) the 'Fourth National Reference Group Meeting'  Committee on Economic Affairs organised by the Consumer Unity and Trust Society  National Committee on Civil Aviation (CUTS), Jaipur at Le Meridien, New Delhi on April  Executive Council, Institute of Applied 14-15, 2004. Manpower Research Session Chair  Board of Governors, Institute of Economic Growth New Perspectives in Retail Banking at FICCI's  Board of Governors, Management Development 'Conference on Global Banking: Paradigm Shift', at Institute, Gurgaon The Leela Palace, Bangalore on September 15, 2004.  The Energy and Resources Institute (TERI)  Energy Policy Advisory Committee Strengthening Capital Flows & Foreign Investment  Panel of Judges for Corporate Environmental at the 'Symposium on Investment, Growth and Awards Reform: India Emerges'. Taj Mahal Palace and  Board of Governors, National Institute of Public Towers Hotel, Mumbai, organised by the Institute of Finance and Policy International Finance, Washington D.C. on  Government Accounting Standards Advisory November 3, 2004. Board  Expert, NISTADS Research Council Prioritising Key Issues in the Economic &  India-Indonesia Expert Working Group, Institutional Regime, at a workshop on 'India and Ministry of External Affairs the Knowledge Economy: Leveraging Strengths and  Ministry of Finance Opportunities' organised by World Bank and CII at  Monitoring Committee on Fiscal Reforms Hotel Oberoi, New Delhi on November 9, 2004.  Advisory Committee on Administered Interest Rates and Rationalisation of the NISTADS Panel Discussion on Outsourcing, Existing Saving Instruments (Chair: Dr. organised by: NISTADS, India at IIC, New Delhi on Rakesh Mohan) December 1, 2004.  Advisory Committee on Macroeconomic Management & Government Finances under Interface between Competition and Regulation at TA project (ADB) 'The International Conference on Moving the  Market Development Advisory Committee, Competition Policy Agenda in India' organised by Securities and Exchange Board of India (SEBI) the Consumer Unity and Trust Society (CUTS), (since April 2003) Jaipur at The Claridges, New Delhi on January 31,  Central Advisory Committee, Central Electricity 2005. Regulatory Commission (CERC)

National Council of Applied Economic Research [67] Annual Report 2004-05

Keynote Address Meeting of the Asian Development Bank, in Jeju Island, South Korea on May 14-16, 2004. Infrastructure Regulation in India: The Labours of Sisyphus, at the 'World Dialogue on Regulation, Presentation Asia Expert Forum', Mount Lavinia Hotel, Colombo, Sri Lanka on September 17, 2004. The Indian Consumer: A Medium-Term Perspective at the Godrej Senior Managers' Session on Investment Friendly Policies, at 'Power- Meeting, organised by Godrej Industries, at the Gen India & Central Asia 2005, Accelerating Power Godrej Vikhroli Campus, Mumbai on April 17, Development' at Pragati Maidan, New Delhi on 2004. February 1, 2005. Unlocking Productivity and Growth in India, Keynote and Concluding Address organised by the US-India Business Council, at The 29th Annual Meeting of the US India Business The Experience of Latin American Countries in Council (US Chamber of Commerce, Washington, Infrastructure Sector Reform: A Dialogue with D.C.) on June 10, 2004. India, organised by the World Bank Institute, Washington D.C. and NCAER in New Delhi on Indian Labour Market: Issues and Concerns, May 4-5, 2004. organised by the Economics Department, OECD, at Speaker the Meeting of National Economic Research Organisations in Paris, France on June 25, 2004. Session on Regional vs. Multilateral Trade, organised by Maeil Business Newspaper, at the 'World At the opening session of the Brainstorming Knowledge Forum 2004' at Sheraton Grande Workshop on Moving out of Poverty: Walkerhill, Seoul, South Korea on October 11-14, Understanding Growth and Poverty from the 2004. Bottom Up, organised by The World Bank in New Delhi on July 7 2004. Session on Economic Reforms, at the 'Euromoney India Conference, Welcoming the World' organised The Great Indian Middle Class. organised by the by Euromoney Conferences at Taj Palace Hotel, American Chamber of Commerce (AMCHAM), New Delhi on November 4, 2004. NCAER and Business Standard at the Maurya Sheraton, New Delhi on July 30, 2004. Session on India in a Global Context, at the 'Delhi Sustainable Development Summit (DSDS) 2004' at Consumer Demographics: Implications for the Car India Habitat Centre, New Delhi on February 4, Market (to the top management of Maruti Udyog 2005. Ltd.), organised by Maruti Udyog Ltd. and NCAER Perspectives on the Indian Consumer: NCAER's at Gurgaon on May 25, 2004. Market Information Survey of Households at the Ludhiana Management Association on February 19, India's Economic Policy Outlook. Organised by the 2005. International Chamber of Commerce at the ICC Commission on Trade & Investment Policy Meeting, Session on Rural Marketing of Durables and Federation House, New Delhi on October 29, 2004. Automobiles, organised by the Birla Institute of Management Technology at the 'National Summit Paper on Economic Growth & Security: Some on Rural Marketing', Le Meridien, New Delhi on Reflections on India and South Asia April 10, 2004. At the 'Conference on Economic Growth and Security', organised by the Delhi Policy Group at the Session on China and India: The New Powerhouses Lahore University of Management Sciences, Lahore, of Asia, organised by Citibank at the Annual Pakistan on October 8-9, 2004.

[68] National Council of Applied Economic Research Appendix I 2004-05

Small Holders in Distress: Coffee in Southern India RAJESH CHADHA (with Dr. Hari Nagarajan). At the symposium E-mail: [email protected] 'Towards High-value Agriculture and Vertical Coordination: Implications for Agri-business and International Honour Smallholders', organised by IFPRI, CII and NCAER, at the National Agricultural Science Declared GTAP Research Fellow (2004-2007) by Centre, New Delhi on March 7, 2005. Purdue University, West Lafayette.

Session Panelist Lectures/Presentations/Major Conferences The Indian Economy in the Coming Decade: Presentation Completing Infrastructural Reforms, at the 'Fifth On India's Trade Policy: Current International Annual Conference on Indian Economic Policy Perspective to MBA students at the Management Reform' organised by Stanford University, Palo Alto, Development Institute (MDI), Gurgaon on CA, at the Stanford Center for International March 8, 2005. Development on June 3-5, 2004. On Using the Neo Classical CGE Model: A case Participant study of India, to IES trainees at the Institute of In the CORNELL, WIEGO, SEWA Exposure & Economic Growth in New Delhi on December 2, Dialogue Programme (EDP) - II, organised by 2004. SEWA, WIEGO & Cornell University, in Boston, MA on October 2-3, 2004. On India's Experience with Improving Policies to Attract Foreign Investment to the 'OECD Global Lecture Forum on International Development' at the Taj IMF & the World Bank: Functions & Reforms at a Palace Hotel, New Delhi on October 20, 2004. 'Special Course for Palestinian Senior Officials' at Achievements of Economic Reforms in India: the Foreign Service Institute, Akbar Bhawan, Challenges for the New Government at Hindu New Delhi on December 9, 2004. College, University of Delhi on August 19, 2004.

Achievements of Economic Reforms in India: SHASHANKA BHIDE Challenges for the New Government to the Email: [email protected] Department of Economics, Australian National University, Canberra on July 6, 2004. Selected Positions Member, Reserve Bank of India Seminar  Group on Debt Sustainability at the State Level On the Achievements of Economic Reforms in in India. The Group submitted its report in India: Challenges for the New Government to MBA October 2004. students and faculty at IIT, Roorkee on October 14,  Group on Real Side of the Economy. 2004.

WTO - Its Role in Trade Liberalisation and Lectures/Presentations/Major Conferences Emerging Issues to MBA students and faculty at Presentation IIT, Roorkee on October 15, 2004. Do Macroeconomic Conditions Matter for Agriculture? (With R. Meenakshi R., and B.P. GATS and its Implications for India and other Vani). At the '42nd Annual Conference of the Indian South Asian Countries to Senior Civil Service Econometric Society', Kolkata on January 20-22, Officers, Indian Institute of Foreign Trade (IIFT) at 2005. IIFT, New Delhi, September 30, 2004.

National Council of Applied Economic Research [69] Annual Report 2004-05

Lecture Refereed Paper India: Its Global Reach - Past and Future, at the On Economics of Planning Course Material: Unit Sidney Myer Asia Centre, University of Melbourne 15 (General Equilibrium) for MA course in on July 5, 2004. Economics (IGNOU).

Panelist Markets and Failure: Cotton in India, at the Indian BASANTA K. PRADHAN Institute of Public Administration IIPA, New Delhi E-mail: [email protected] on July 30, 2004. Lectures/Presentations/Major Conferences Presentation SANJIB POHIT At a Research Workshop on Moving Out of Poverty: Email: [email protected] Understanding Growth and Freedom from the Bottom Up, Defining the Focus of India, organised Selected Positions by The World Bank, New Delhi on July 7, 2004. Member Expert Committee on Forecasting National Participant Electricity Demand using Econometric In a workshop on Energy Policy Reforms and Methodology in Connection with the 17th Electric Agriculture in India: A General Equilibrium Power Survey of India. Exploration organised by IRADe, New Delhi and Stanford University at IIC, New Delhi on April 20, Lectures/Presentations/Major Conferences 2004. Lecture In a Consultation Workshop on the World Bank's Impact of RTAs/FTAs on the Indian Economy, Draft Country Assistance Strategy for India Industry and Consumers, CGE Modelling, (2005-08), organised by The World Bank at IIC, organised by RIS at the training programme for New Delhi on July 2, 2004. Tariff Commission Officers on March 2, 2005. In Round Table discussion on the Economic Impact Presentation of AIDS in India organised by The World Bank, Quantifying the Transport, Regulatory and Other New Delhi on September 29, 2004. Costs of Indian Overland Exports to Bangladesh organised by the Department of Economics, Lecture Jadavpur University, at the 'XIVth Annual Delivered 18 lectures on Analysis of Strategic Conference on Contemporary Issues in Management to BSc (III Yr) students at Institute of Development Economics' on December 21–22, Technology and Management, Gurgaon between 2004. September-October 2004. Degree awarded by University of London. On Trade Facilitation, at the Commonwealth Business Council SAFTA Round Table, organised by Delivered two lectures on Social Accounting Matrix, the Council of Social Development, New Delhi, on Methodology and Application to IES Probationers December 15–16, 2004. at The Institute of Economic Growth, New Delhi on November 18, 2004. India's Informal Trade with Nepal, at the 'EGDI- WIDER Conference-Unlocking Human Potential: Two lectures on Macroeconomic and Policy Linking the Informal and Formal Sectors', Helsinki, Reforms in India to the 33rd MDP for the Finland on September 17–18, 2004.

[70] National Council of Applied Economic Research Appendix I 2004-05 empanelled Deputy Secretaries of Government of Inaugural address India, at The Indian Institute of Public The Economics of Artisans, Craftsmen and Traders Administration, New Delhi on January 31, 2005. in India at a national seminar organised by the Centre for Promotion of Educational and Cultural Resource person Advancement of Muslims of India (CEPECAMI), Meeting of M.A. (Economics) course writers, Aligarh Muslim University on February 21, 2005. organised by IGNOU, New Delhi on November 25, 2004. Presentation Why are we so Weak - Economically? Third party evaluator for Eastern Gandak Canal At the Islamic Youth Camp Organisation of India at Hydroelectric Project for Japan Bank for Hamdard Public School, New Delhi on June 6, 2004. international co-operation, Tokyo, October 2004. Literacy Status in India at the Office of the Registrar Discussant General & Census Commissioner on Data For two papers at the International Seminar on Dissemination, Vigyan Bhawan, New Delhi on July Wages and Incomes in India: Emerging Patterns 10, 2004. and Perspectives, organised by the Institute of Human Development, Institute of Gender Gaps in Human Development Indicators in Development Research (IGIDR) and Indian Society India: Temporal Dimensions, at the 'Annual of Labour Economics at the IGIDR Campus, Conference of the International Association for Mumbai from December 12-14, 2004. Feminist Economics' at St. Hilda's College, Oxford University from August 3–9, 2004.

ABUSALEH SHARIFF How Much Do We Invest On Our Children? Email: [email protected] Assessment of Resource Gaps in Education and Health, at the 'Conference on Reaching out of the Selected Positions Child -An Integrated Approach to Development and Appointed Early Education of Children' organised by the World Bank, at Imperial Hotel, New Delhi on September Member Secretary for Prime Minister's High Level 22, 2004. Committee to prepare a Report on Social, Economic and Educational Status of the Muslim Community Poverty and Healthy Equity: an Indian Case Study of India, Cabinet Secretariat, Government of India at the annual meeting of the Global Forum for Health Research in Mexico City from November Member/Adviser, Outstanding Research Awards 16-20, 2004. Committee - Investment in Health and Mutual Impact, for the Global Development Network, Geographical Overlap of HIV/AIDS, TB, Dakar, Senegal, January 26, 2005 Malnutrition and Food Insecurity in India, and Linkages among HIV/AIDS, TB and Food Security Lectures/Presentations/Major Conferences in India, organised by the World Food Programme Chaired (WFP), at the 'National Consultation on Nutritional Security and the Prevention, Treatment Session on Gender and Patriarchy in India and and Mitigation of TB and HIV/AIDS in India', at Bangladesh at the 'Population Association of Nehru Memorial Museum and Library, Teen Murti America 2004 Annual Meeting Program' in Boston, House, New Delhi on December 2-3, 2004. MA from April 1-3, 2004.

National Council of Applied Economic Research [71] Annual Report 2004-05

Beyond 2020: India in the Global Economy (with ANIL KUMAR SHARMA Dr. Rakesh Mohan, and Dr. T. N. Srinivasan) Email: [email protected] organised by The Yale Club of India and Richard C. Levin, President of Yale University at the C.D. Selected Positions Deshmukh Memorial Auditorium, IIC, New Delhi on January 3, 2005. Member  Inter-ministerial Committee on Negotiations on Role of Migration in Nation Building Agriculture in the WTO. As part of the 'Julian L. Simon Memorial Lecture  High Powered Committee on Price Stabilisation delivered by Ken Schooland, at: Gulmohar Hall, Fund Trust, Ministry of Commerce India Habitat Centre, New Delhi on January 10,  2005. Technical Advisory Committee (TAC) for Evaluation, Ministry of Commerce Participant Lectures/Presentations/Major Conferences In a seminar on Employment and Economic Growth at the Observer Research Foundation, 20 Presentation Rouse Avenue, New Delhi on August 17, 2004. Understanding India's Aggressive and Defensive Stance in Agricultural Trade Negotiations in a Lecture conference on 'Future of Agricultural Policies', Developing and Developed Worlds: Mutual Impact organised by the Institut Francais des Relations at the 'Sixth Annual Global Development Internationales, Paris in October 2004. Conference and Workshop' in Dakar, organised by the Government of Senegal from January 21-30, Market Access in Agriculture under the New 2005. Framework Agreement, before an inter-ministerial group meeting on Agricultural Trade Negotiations at Attended the Ministry of Commerce, New Delhi in February A Research Workshop on Moving Out of Poverty: 2005. Understanding Growth and Freedom from the Bottom Up. Defining the focus of the India, at The Special Products: Issues Related to Identification World Bank, New Delhi on July 7, 2004. and Tariff Reduction Mechanisms, before an inter-ministerial group meeting on Agricultural International Conference of Philanthropy for Social Trade Negotiations at the Ministry of Agriculture, Justice in Muslim Societies, the Third Sector New Delhi in February 2005. Foundation of Turkey, at Istanbul, Turkey from August 31–September 9, 2004. Dealing with Non-ad valorem Bound Rates of Agricultural Tariffs, before an inter-ministerial Electronic Media group meeting on Agricultural Trade Negotiations at the Ministry of Commerce, New Delhi in April Interview 2005. On: Doordarshan, February 18, 2005 Participant In a round table discussion on the Draft Report on Commodity Futures Markets, organised by the Ministry of Food, Government of India and USAID, New Delhi on November 19, 2004.

[72] National Council of Applied Economic Research Appendix I 2004-05

Meetings of the High Powered Committee on Price RAJESH K. SHUKLA Stabilisation Fund Trust, at the Ministry of Email: [email protected] Commerce, New Delhi in February 2005. Short Term Visiting Scholar Meetings of the Technical Advisory Committee (TAC) for Evaluation Agro-Economic Research June 20-28, 2004: at London School of Economics Centres at the Planning Commission, New Delhi in (LSE) under ESRC Science and Society Programme January 2005. (2004).

In a seminar on Commodity Futures, organised by Lectures/Presentations/Major Conferences FICCI at New Delhi in July 2004. Keynote Speaker Pitch Brainstorm 2005, organised by Exchange In a meeting of the Expert Group on WTO 4 Media Group, New Delhi on March 18, 2005. Negotiations in Agriculture at Yojana Bhawan, New Delhi in July 2004. Presentation

In a panel discussion on WTO Framework Operating Characteristics of Survey Methodology Agreement, organised by CII in New Delhi in for Estimation of Tourism Expenditure in August 2004. Developing Countries at the 'RC33 Sixth International Conference on Social Science In a two day meeting on Agricultural Trade Reform: Methodology', organised by the University of The Role of Economic Analysis, organised by the Amsterdam, The Netherlands from August 17-20, Australian Bureau of Agriculture and Resource 2004. Economics (ABARE) at Canberra, Australia on Consumer Demographics - Implication for Car November 3-4, 2004. Market to delegates of Maruti Udyog, at Gurgaon on May 24, 2004. In inter-ministerial meetings on Trade Negotiations in Agriculture, organised by the Ministry of Changing Income Demographics: Future of Small Commerce and Industry, New Delhi; in April, Car Market in India to delegates of Toyota Motors September, October, November, December (2004) from India and Japan on July 12, 2004. and February, March and April (2005). The Great Indian Middle Class: Results from In a brainstorming session on a New Vision, NCAER's Market Information Survey of Strategy, and Action Plan for the Food Processing Households at the Punjab, Haryana, Delhi Industry in India, organised by the Ministry of Food Chambers of Commerce and Industry (PHDCCI), Processing Industries, New Delhi on December 15 New Delhi on September 3, 2004. 2004. Domestic Tourism Survey – Major Findings,to Attended Minister and Officials of Ministry of Tourism and Seminar on Agriculture to Agribusiness - The Road Culture, Government of India, New Delhi on Ahead, organised by the Asian Development Bank, October 8, 2004. New Delhi in May 2004. India Science Report: Major Findings to members of the Monitoring Committee INSA, New Delhi on November 28, 2004.

India Science Report: Major Findings to INSA Fellows at Chennai on December 28, 2004.

National Council of Applied Economic Research [73] Annual Report 2004-05

Lecture FICCI's Rural Marketing Summit Kicks Off in Mumbai Attitudes to Science and Technology in India, at the http://headlines.sify.com (2004, December 14). London School of Economics (LSE), London on Changing Face of Rich and Young India June 23, 2004. http://reuters.co.uk (2004, December 14). Confident Consumers Transform Indian Economy Indicators of Public Engagement with Science - The http://www.thestandard.com.hk (2004, December State of the Art, to participants from the Royal 15). Young India happy to be Big Spenders Society of London, University of Surrey, Science & http://www.chinadaily.com.cn (2004, December 23). Technology Studies, UCL and LSE, London on Assured Consumers Change Indian Economy June 24, 2004. http://dailynews.muzi.com (2004, December 30). Confident Consumers Change Face of Indian Attended Economy. Human Resource Development in Science and Technology - Key Issues and Future Strategy, organised by CSIR, for Secretaries and Minister ANUSHREE SINHA Science & Technology, New Delhi on December 24, Email: [email protected] 2004. Lectures/Presentations/Major Conferences Major Electronic Media Invited Expert Interviewed on: At consultation on UNDP initiative, Impact of Aaj Tak Macroeconomic Policies on Women, at Jacaranda, Business Hours: February 20, 2004. India Habitat Centre, New Delhi on November 25, Great Indian Middle Class: July 15, 2004 2004. Opportunities in Small Towns: July 16, 2004 Presentation Discussant Paper on Reforms and Informalisation: What Lies Business Today: July 17, 2004 & February 20, 2005 behind Jobless Growth in India? (with Christopher Adam) at the 'EGDI-WIDER Conference on CNBC Unlocking Human Potential Linking the Informal Aaj Ka Karobar (6–7 PM Hindi): July 16, 2004; and Formal Sectors', Helsinki on September 17-18, Prime Time (9 PM English) 2004. Star News Seminar City 60, The Great Indian Middle Class: July 17, 2004 CGE Model Analysis on Informalisation of Labour in India, at the World Bank in Washington D.C. on NDTV Profit November 4, 2004. Budget and Aam Admi: Money Mantra: February 21 & 22, 2005 Macro-Analysis of Gender in the Indian Context,at Service Sector and Credit Card: Money Mantra: the Graduate School of International Studies March 23 & 24, 2005 (GSIS), University of Denver on November 9, 2004. http://rediff.com (2004, July 14). Delhi Has More Impact of Policy Changes on Exports and other Crorepatis than Mumbai Macro Economic Indicators, at the Ministry of (2004, July 15). Nagpur, Fastest Growing Crorepati Commerce, New Delhi on May 17, 2004. (2004, July 16) Riches: West Bengal's Decline Worst http://www.indiantelevision.com (2004, October 5).

[74] National Council of Applied Economic Research Appendix I 2004-05

Impact of Reforms on Informal and Home-based In IFPRI-CII-NCAER Symposium Towards High Workers, at the '41st Annual Conference of the Value Agriculture and Vertical Coordination: Indian Econometric Society' at Jadavpur University, Implication for Agribusiness and Small Holders,at Kolkata from January 20–22, 2005. the Lecture Hall, NASC, Pusa, New Delhi on March 7, 2005. Scoping paper on Informal Sector Survey,at a technical discussion at the Asian Development Bank Lecture (ADB), New Delhi on February 3, 2005. Visiting Expert, on Gender Modelling in an intensive course on 'The International Working Participant Group on Gender, Macroeconomics and Long-term Global Impacts of Gender-Focused International Economics', at the Department of Investments and Policy Reforms, organised by the Economics, University of Utah, Salt Lake City, USA International Food Policy Research Institute (IFPRI) from June 3-18, 2004. at Virginia, USA from November 1–3, 2004.

In the seminar on Creating Human Institutional PRADEEP SRIVASTAVA Capacities for Trade and Globalisation in India Email: [email protected] Ministry of Commerce/UNCTAD/DFID Project, at India Habitat Centre, New Delhi on April 12, 2004. Lectures/Presentations/Major Conferences Attended NCAER-SEWA Collaborative Research on the Garment Industry in India, in New Delhi on April Workshop: An Exploration of Leisure and Holiday 27, 2004. Tourism in India on Tourism Satellite Account and Domestic Tourism in India, at NCAER, New Delhi In a Work-in-progress one-day Workshop of the in March 2005. IDPAD project on Trade Liberalisation: Impact on Employment, Skills and Technology at the Session on Microfinance 2008 at the 'National Lakdawala Hall, Gujarat Institute of Development Conference on Microfinance', New Delhi in April Research, Ahmedabad on November 29, 2004. 2004.

In Workshop on Re-Energising Agriculture in Presented India, organised by RGCIS, the World Bank and Paper at national workshop on Protecting the IFPRI at the Foundation, New Delhi Vulnerable Poor in India: Role of Social Safety Nets, on December 17, 2004. organised by the United Nations Food Programme and DFID, New Delhi in February 2005. As a member of the Network Working Group on Informal Economy in Research and Statistics Panelist (WIRES), to discuss way ahead for 'Informal Sector At session on Microfinance at World Bank's Global Analysis', at IIC, New Delhi on January 3, 2005. Conference on Scaling up Poverty Reduction,at Shanghai, PRC in May 2004. In an ISST seminar Beyond Practical Gender Needs -Woman in North Eastern Hill States, at IIC, Invited Speaker New Delhi on February 15, 2005. At the Asian Development Bank Institute (ADBI)- sponsored series of workshops on Poverty Targeting In the Working Group on Informal Economy in in Pakistan, at Islamabad, Karachi and Lahore in Research and Statistics (WIRES), meeting with the June 2004. National Commission on Enterprises in the Unorganised/Informal Sector on March 2, 2005.

National Council of Applied Economic Research [75] Annual Report 2004-05

Discussant Lectures/Presentations/Major Conferences At a workshop on Poverty Targeting in Asia, ADBI, Presentation Tokyo in July 2004. E-preparedness, 2004-05, to senior officials of the R. VENKATESAN Department of Information Technology of various states. Email: [email protected] Results of e-Governance in an In-service training Selected Positions programme, to senior IAS officers at the Lal Bahadur Advisory Member, Task force on MoU Evaluation Shastri Academy, Mussoorie. for Central PSEs A possible export incentive programme to replace the Duty Entitlement Passbook Scheme (DEPB),to different industry majors in November 2004.

[76] National Council of Applied Economic Research Appendix II – Resources 2004-05

Appendix II – Resources Staff Composition

Composition of NCAER Permanent and Regular Staff Members in Active Service on March 31, 2005

Researchers March 31, March 31, March 31, March 31, March 31, 2001 2002 2003 2004 2005

(I) Professionals 65 60 51 43 37 Director-General 1 1 1 1 1 Level 6 10 10 8 9 11 Level 5 15 14 12 8 4 Level 4 3128211714 Level 3 8 7 9 8 7 (II) Field Staff 11 9 7 6 4 Level 4 10 8 6 5 3 Level 3 1 1 1 1 1 Total 76 69 58 49 41

Composition of NCAER Non-Regular Research Staff in Active Service on March 31, 2005

Researchers March 31, March 31, March 31, March 31, March 31, 2001 2002 2003 2004 2005

Professionals 37 37 26 48 32 Senior Consultant/Chief Advisor 8 7 5 7 4 Consultant 13 21 10 15 10 Research Associate 16 9 11 26 18 Total 37 37 26 48 32

Staff Analysis

Researchers Support staff Total

Total staff* 73 61 134** Permanent staff 11 14 25 Regular Staff (3 years and above) 29 25 54 Contractual staff (1-3 years) 31 22 53 Staff on deputation 2 - 2 Staff on lien/long leave 11 - 11 Male staff 51 47 98 Female staff 22 14 36 Doctorates 23 1 24

*Staff composition does not include contractual staff on term less than six months and those on lien/long leave. **One Fellow (Research) also holds the additional responsibility of Registrar & Secretary.

National Council of Applied Economic Research [77] Annual Report 2004-05

Regular Professional Research Staff 2004–05

(I) Professionals Dr. Devendra Kumar Pant Level 3 (Research Analyst) Dr. Kanhaiya Singh Mr. Suman Bery Mrs. Poonam Munjal Dr. Sunil K. Sinha Director-General Mrs. Abhilasha Sharma Mrs. Asha Sharma Level 6 (Senior Fellow) Level 4 (Associate Fellow) Mrs. Rachna Sharma Dr. Shashanka Bhide Mr. M.K. Arora Mr. Shalabh Kumar Singh Dr. Rajesh Chadha Dr. Saurabh Bandyopadhyay Mrs. Anjali Tandon Dr. Hari K. Nagarajan Dr. Tarujyoti Buragohain Ms. Sonal Vats Dr. Sanjib Pohit Dr. Samantak Das Dr. B. K. Pradhan Dr.S.K.Dwivedi (II) Field Staff Dr. Abusaleh Shariff Mr. R. K. Jaiswal Level 4 (Associate Fellow) Dr. Anil Kumar Sharma Mr. M. M. Khan Mr. S. K. Bathla Dr. R. K. Shukla Mr. S. K. Mondal Mr. Om Prakash Sharma Dr. Anushree Sinha Mr. Dripto Mukhopadhyay Mr.K.S.Urs Dr. Pradeep Srivastava Mr. Devender Pratap Mr. R. Venkatesan Dr. Sambasiva Rao Level 3 (Research Analyst) Dr. Rupinder Kaur Mr. R. S. Landge Level 5 (Fellow) Mr. K. A. Siddiqui Dr. Saumen Majumdar Mr. Y. K. Tanwar

Non-Regular Professional Research Staff 2004–05

Senior Consultants/Chief Mr. T. C. A. Srinivasa- Mr. Andranil De Advisor Raghavan Mrs. Ramneet Goswami Mr.P.K.Roy Ms. Manisha Grover Prof. D. B. Gupta (Part-time) Mr. Ajay Kumar Sahu Ms. Charu Jain Mr. Gajendra Haldea Dr. Sampurna Singh Ms. Reeta Krishna (On secondment) Dr. Tejinder Singh Ms. Rashmi Rastogi Mr. S. K. N. Nair Ms. Y. Venkataramana Mr. Piyush Kumar Sandilya Mr. P. L. Narayana Mr. Kaushik Sen Research Associates Consultants Mr. Toposmito Sengupta Ms. Nandini Acharya Mr. Anuj Sharma Mr. Bibek Ray Chaudhuri Mr. Abhisekh Akhouri Mr. Shishir Shekhar Ms. Puja Vasudeva Dutta Mr. Subrata Bandyopadhyay Mr. Amit Soni Mr. Kosar Jamal Khan Ms. Moumita Dasgupta Ms. Rupali Subudhi Ms. Rupa Malik Ms. Lipika Dasgupta

Staff on lien/long leave (as on March 31, 2005)

Dr. J. S. Bedi Mr. D. K. Joshi Mr. S. V. Malvea Mr. S. D. Brahmankar Dr. Pramod Kumar Mr. Amrendra Sahoo Mr. P. K. Ghosh Mr. Santosh Kumar Mr. A. Subramanian Dr. Anil Gumber Ms. Veena Kulkarni

[78] National Council of Applied Economic Research Appendix II – Resources 2004-05

Support Units

Composition of Support Units of NCAER

Support Units March 31, March 31, March 31, March 31, March 31, 2001 2002 2003 2004 2005

Regular & Permanent 1. Level 5 5 6 6 4 3 2. Level 4 3 3 1 2 1 3. Level 3 16 19 13 14 13 4. Level 2 29 24 21 19 19 5. Level 1 3 4 4 4 4 Total 56 56 45 43 40

Support staff (short-term) 1. Officers 4 4 5 2 1 2. Technical staff 6 5 6 3 3 3. Office Staff 13 19 18 10 10 4. Service Staff 8 8 8 8 8 Total 31 36 37 23 22

Regular Support Staff 2004–05

Level 5 Mr. Netram Verma Mrs. Sangita Chaudhary Dr. Sunil K. Sinha Assistant Accounts Officer Mr. Budh Singh Registrar & Secretary (Acting) Mr. P. M. Verma Mr. Bijay Chouhan Mr. Vinod Kumar Gupta Mr. J. M. Chawla Assistant Librarian Mr. Z. A. Khan Head, Computer Centre Other staff members Mr. G. C. Khulbe Mr. N. J. Sebastian Level 3 (Senior Executive) Mr. B. Ramesh Librarian Mr. Ajay Gupta Mr. D. N. Sharma Mr. Vinay Kumar Sharma Level 4 Mrs. Sudesh Bala Mr. Balwant Singh Mr. J. M. Pandit Mr. Dharam Pal Mr. Jai Singh Admn. Officer (Personnel & Mr. Praveen Sachdeva Mr. Niraj Kumar Singh Admn.) Mr. Dhanraj Singh Ms. Garima Singh Mr. Prem Singh Level 3 Mr. Praveen Sharma Mr. Rajender Singh Mr. Saran Singh Mrs. Geetu Makhija Mr. Rakesh Srivastava P.S.to the Director-General Level 2 (Executive) Level 1 (Service Assistant) Mr. J. S. Punia Mr. Khurshid Ahmed Senior Publications Assistant Mrs. Shalini Aggarwal Mr. G. Anil Mr. Ram Kumar Mr. B. S. Saini Mr. Surinder Kumar Assistant Maintenance Officer Mr. Ram Belas Mr. Vijay Bhasker Mr. Satyender Singh

National Council of Applied Economic Research [79] Annual Report 2004-05

Non-Regular support Staff

Dr. Dalip Kumar Mr. Yogesh Kumar Mr. Surya Pal Sharma Admn. Officer (Projects) Mr. Dilip Kumar Mishra Mr. Bhola Singh Mrs. Niti Anand Ms. Roma Pathania Mr. Dinesh Singh Mr. Mam Chand Mr. Vidya Sagar Mr. Kashmir Singh Ms. Trishla Chauhan Mrs. Neeta Sahu Mrs. Sadhna Singh Mrs. Poonam Dhawan Mrs. Rahel Robert Samuel Mr. Nitin Kumar Thapliyal Mr. Mahboob Khan Mr. Ashok Kumar Sharma Mr. Rajkumar Yadav Mrs. Jaya Koti Ms. Sarita Sharma

[80] National Council of Applied Economic Research Appendix II – Resources 2004-05

Library

Increasingly used by research scholars from different parts of the country (more than 1800 outside researchers used the library during 2004-05), the NCAER Library has emerged as an important resource centre that is service-oriented rather than a mere storehouse for books, journals and other documents. The Hindi daily Hindustan published a write-up on the NCAER Library on April 7, 2005 detailing its collection and services.

Collection Development The library's collection development policy is guided by the Council's research requirements as well as a broader policy toward making it a prominent resource centre in the area of economics: new areas include health care infrastructure development and the informal sector among others. The library is also building a collection in the area of international trade with special emphasis on World Trade Organisation (WTO) and related areas. About 1500 documents were added to the library during 2004- 05 as were more than 1200 working papers and discussion papers. Most of the working papers and discussion papers were received The Study Room on a complimentary or exchange basis from international and national institutions like the International Monetary Fund (IMF), Institute of Social Studies (ISS), Asian Development Bank (ADB), Centre for Development Studies (CDS), Gujarat Institute of Development Research (GIDR), V. V. Giri National Labour Institute ICRIER, etc.

Some important CD databases in the library are:

Bibliographical Databases  Econlit  ISID Research Reference CD

Statistical Databases  World Development Indicators (The World Bank)  Global Development Finance (The World Bank)  International Financial Statistics (IMF)  Balance of Payment Statistics (IMF)  Direction of Trade Statistics (IMF)  Government Finance Statistics (IMF)  National Accounts Statistics of India 1950–51 to 2002–03 (EPW Research Foundation)  Handbook of Statistics on the Indian Economy 2004 (RBI)  Handbook of Statistics on State Government Finances 2004 (RBI)  Foreign Trade statistics of India (DGCI&S)  Monthly Statistics of Foreign Trade of India (DGCI&S)

National Council of Applied Economic Research [81] Annual Report 2004-05

Full text Databases  World Investment Report 1991–2004  World Development Report 1978–2003  State of Indian Farmer 2005

Library Services These include a Current Contents Service, Current Awareness Service in Economics (CASE) List of Working Papers, press clippings, reference services etc. The Internet is extensively used to provide value-added services to researchers from remote areas. The library also provides other services like literature searches and compilation of bibliographies. The library could enhance services to researchers by being part of British Library for Development Services in collaboration with GDN and iManagement supported by KIT Institute, The Netherlands. The library's own publication Artha Suchi has been coming out regularly. Online access to library's Current Awareness Service is provided through the library's home page.

In 2005 Digitisation of unpublished reports of NCAER is a major project the library would like to undertake during 2005, provided sufficient The Reference Section funding were available. The library has compiled a list of unpublished NCAER reports available with it. This list could be hosted on library's home page once the NCAER web page is redesigned. Online access to many of the journals subscribed by the library would also be made available to NCAER researchers soon.

The Library Collection as on March 31, 2005 Year Books Reports Other Documents Total Collection

2003-04 24312 34027 16293 74632

2004-05 24773 34506 16841 76120

[82] National Council of Applied Economic Research Appendix II – Resources 2004-05

Computer Centre

Responsible for the maintenance of the Council's information technology (IT) infrastructure as well as data processing of primary surveys conducted by its staff, the Computer Centre maintains around 160 desktop PCs, 17 laptops, network laser printers, colour laser and DeskJet printers, scanners, and CD-writers, etc. Many econometric and statistical software packages/programmes like Gempack GAMS e-views Microfit Stata and Shazam, among others, have been made available for researchers along with a good internet and e-mail facility with a 256 kbps leased line. The Council also maintains its own website.

An Office Management System implemented with the help of M/s BIPNET includes personnel and leave management systems project costing financial controls vendor management as well as a management information system.

The Computer Centre and the Library are jointly working on implementing the Data Management System which will convert all completed primary and secondary study data sets to a usable format for further analysis by researchers.

Some major data processing projects completed during 2004–05 were:  National Impact Assessment Survey of Kisan Credit Card Scheme.  Cost Benefit Analysis of Rural Roads in Purulia District of West Bengal.  Study of Evaluation of Functioning of Sub Centres in India.

National Council of Applied Economic Research [83] About NCAER

he National Council of Applied Economic Research (NCAER) was founded in 1956 as an independent institution, run by its Governing Body, to give support to both the government and the private sector in Tempirical economic research. The bulk of the Council's revenue comes from studies done on contract for clients in government, the development community, and the private sector. 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 permeates the Council's current research activities is the progress of India's economic reform programme and its impact on agriculture, industry, and human development.

The Governing Body, headed by its President, is elected by the members, and includes prominent persons from government, industry, and academia. The chief executive of the Council is its Director-General, and members include state governments, public sector corporations, corporate houses, and other associations and institutions.

The current Director-General, Mr. Suman Bery, assumed charge on January 1, 2001. He was earlier at the World Bank in Washington, where he held a number of positions that entailed economic analysis. Between 1992 and 1994, Mr. Bery was based in Mumbai as Special Consultant to the Governor of the Reserve Bank of India (RBI).