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Moving forward, India has to achieve a skilful balancing act. While fiscal prudence is important, development policies that aim at bringing the economy back on a higher growth trajectory and at the same time ensuring adequate spending on the social sector especially education, health care, and employment generation are equally important. Since India is behind not only China but also Sri Lanka and many others neighbouring countries in terms of human development, any additional fiscal space available ought to be utilized for human development through growth-oriented social sector programmes. This will help achieve the twin objectives of maintaining the growth trajectory and achieving more inclusive development.

It is also high time that we bring in effective measures to improve the efficiency, especially in the delivery mechanism, of all social-sector programmes in the fields of education, health, and employment, while taking note of region- specific successes and failures in the past so that these interventions yield desired outcomes. All programmes and legislations have laid stress on developing planning and implementation strategy in a bottom-up approach which can be achieved only by developing and strengthening grassroots level institutions like the PRIs and making them vibrant.