In fact, India’s population structure will, in 2050, mirror that presently found in the major industrial countries. Fortunately, from, the fiscal point of view, unlike in industrial countries, India does not have a “Beveridgean” social insurance system in place. Thus, India’s demographics do not necessarily portend explosion in government social insurance outlays arising from underlying existing policy commitments.
Scarce budgetary resources should be allocated only to public goods and services, such as agricultural research and extension services and rural feeder roads, where they can generate the highest social rates of return, if well designed and implemented.5 5. Conclusions  To conclude, I will briefly summarise the main messages of my address.