The reforms that India has implemented over the past six years have fueled an unprecedented level of economic performance. For the third year in a row, GDP grew at around 7 percent in fiscal year 1996-97 (ending on March 31), placing India among the world's best-performing economies. This report evaluates the nation's rapid economic growth and suggests policy priorities and reforms at the sub-national level to sustain India's economic performance. Chapters examine recent macroeconomic developments, the structural reforms of 1996-97, economic management issues, and development policies within India's states. Annexes provide economic development data and social indicators.