Vol. 5(6) pp. 141-144, October 2013 DOI: 10.5897/JPAPR12.001 ISSN 2141-2480 © 2013 Academic Journals http://www.academicjournals.org/JPAPR Journal of Public Administration and Policy Research Full Length Research Paper Efficient policy of India Mohd Atir Kucha Chelan, Darya Ganj, New Delhi – 110002, India. Accepted 19 September, 2013 Public policy and governance, which defines country’s growth strategy, plays a significant role in any country’s development story. In case of India, if its development and growth is compared with other nations, who were once just as developed as India was, we found that India has not been able to transform itself into a developed nation that it could have done by now. The reason behind this is not just slow but inconsistent growth of India’s GDP and its public finance policy, which together played an important role in its inefficient growth. India’s tax to GDP ratio and Expenditure to GDP ratio is just 1/3 rd of most of developed nations like European Union countries which together have tax to GDP ratio as high as 40.1 % in the year 2011.India has never shown a consistent growth rate in its 65 years unlike its other peers for example Indonesia, Brazil, China. On the other hand, Indian government has been following divestiture led privatization policy, which raised the Non debt Capital Receipts for the country in place of contributing to the Non-Tax Revenue. These points of inconsistent growth, public finance policy leading to low tax to GDP ratio, divestiture led privatization prove that macroeconomic policy of India is not very efficient and it has not able to utilize its capital efficiently. Key words: GDP ratio, divestiture led privatization, efficiency, growth rate. INTRODUCTION India got independence on 15th August 1947 and successfully transformed itself from well-governed to a well administered country. It turned out to be world’s largest and successful democracy with free and fair elections in every nook and cranny of the country as one of its strengths, which proves that secularism, justice, and freedom are its core values. However, the world has come a long way since 1947, and various nations like Brazil, China, Denmark, Japan, Malaysia, and Sweden have not just administered their country but also managed their resources in order to have best in potential output. They proved their efficiency through their consistent growth rate, high tax to GDP ratios, and high HDI ranks. China, for example has shown a consistent growth rate of more than 7% for the last 25 years, which has made it now to have the world’s second largest economy next only to US. Therefore, the study done to probe the factors behind it has the following objectives: 1. To analyze investment efficiency of India in macroeconomic terms. 2. To evaluate the efficiency of privatization being done in India. 3. To analyze the efficiency of the policy being followed in budget over the recent years. 4. To analyze the GDP growth rate of India in comparison to other nations who have shown sustainable growth rate of more than 7% for at least 25 years. RESEARCH METHODOLOGY The research purpose is diagnostic, with objective to diagnose the public policy of India. It tried to utilize the academic knowledge of the author in the right direction. Data from various sources were used. Applied research is being conducted through collection of Data from the E-mail: moh.atir@gmail.com. Tel: 09871113860.