Committees
Economics · समितियां
📋Quick Overview
The Indian government has constituted numerous committees and commissions to recommend reforms in banking, taxation, poverty estimation, monetary policy, and financial inclusion. These committee names and their recommendations are frequently asked in competitive exams. Key committees include Narasimham (banking), Kelkar (tax), Rangarajan (poverty/disinvestment), Tendulkar (poverty line), Tarapore (capital account), Urjit Patel (monetary policy), and Raghuram Rajan (financial inclusion).
📖Major Economic Committees & Recommendations
| Committee | Year | Subject | Key Recommendations |
|---|---|---|---|
| Narasimham Committee-I | 1991 | Banking Sector Reforms | Reduce SLR & CRR, deregulate interest rates, set up Asset Reconstruction Fund, 4-tier banking structure, abolish branch licensing |
| Narasimham Committee-II | 1998 | Banking Sector (Phase 2) | Merge weak banks with strong banks, reduce govt stake in PSBs to 33%, strengthen capital adequacy norms (CAR 10%) |
| Kelkar Committee | 2002 | Tax Reforms (Direct & Indirect) | Widen tax base, reduce exemptions, introduce VAT, simplify income tax, abolish surcharges. Led to GST discussions |
| Rangarajan Committee | 2012 | Poverty Estimation | Monthly per capita: Rs 1407 (urban), Rs 972 (rural). Estimated 29.5% BPL (2011-12). Based on calorie + non-food items |
| Tendulkar Committee | 2009 | Poverty Line | Poverty line: Rs 816/month (urban), Rs 672/month (rural). Uniform basket for rural & urban. Estimated 21.9% BPL (2011-12) |
| Tarapore Committee-I | 1997 | Capital Account Convertibility | Reduce fiscal deficit to 3.5%, inflation 3-5%, reduce CRR to 3%, NPA below 5%. Full CAC in 3 phases |
| Tarapore Committee-II | 2006 | Fuller Capital Account Convertibility | Recommended CAC implementation by 2011 in phases. Ceiling on FII investment to be raised gradually |
| Urjit Patel Committee | 2014 | Monetary Policy Framework | Adopt CPI-based inflation targeting (4% +/- 2%). Set up MPC (Monetary Policy Committee) with 6 members. RBI's primary objective = price stability |
| Raghuram Rajan Committee | 2008 | Financial Inclusion / Financial Sector Reforms | 100 recommendations for next-gen reforms. Unified financial regulator, expand financial inclusion, financial literacy |
| Y.V. Reddy Committee | 2002 | Fiscal Responsibility | Led to FRBM Act 2003. Fiscal deficit target 3% of GDP. Eliminate revenue deficit. Transparent fiscal policy |
| Raja Chelliah Committee | 1991 | Tax Reforms | First major tax reform committee post-liberalization. Recommended reducing peak customs duty, broadening tax base, introducing VAT |
| Malhotra Committee | 1994 | Insurance Sector Reforms | Open insurance to private players, set up IRDA (now IRDAI). Led to IRDA Act 1999 |
📝Poverty Estimation Committees — Comparison
| Committee | Year | Criteria | Poverty (%) |
|---|---|---|---|
| Alagh Committee | 1979 | Calorie-based: 2400 cal (rural), 2100 cal (urban) | First official poverty line |
| Lakdawala Committee | 1993 | State-wise poverty lines using CPI-AL & CPI-IW | 36% (1993-94) |
| Tendulkar Committee | 2009 | Uniform basket (rural & urban), Rs 816/672 per month | 21.9% (2011-12) |
| Rangarajan Committee | 2012 | Calorie + protein + fat + non-food, Rs 1407/972 per month | 29.5% (2011-12) |