Rationale of Economic Reforms
INTRODUCTION
Though economic liberalization in India can be traced back to the late 1970s, economic reforms began in earnest only in July 1991. The reforms initiated by former Prime Minister Narasimha Rao and former Finance Minister Dr. Manmohan Singh in July 1991 represent a watershed in India's economic development strategy and policies since independence. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package.Though the foreign-exchange reserve recovered quickly and ended effectively the temporary clout of the IMF and World Bank, reforms continued in a stop-go fashion. To understand how much of a break from the past the reform programme represents, why it was called for, and what brought it about, and indeed in understanding why some components of the programme, such as privatization for example, have not made as much headway as others and are facing significant resistance including from some of the constituents of the United Front, one has to go back to the pre-independence roots of Indian economic development strategy.
Economic liberalisation in India
From Wikipedia, the free encyclopedia
The economic liberalisation in India refers to ongoing economic reforms in India that started on 24 July 1991. After Independence in 1947, India adhered to socialist policies. Attempts were made to liberalise economy in 1966 and 1985. The first attempt was reversed in 1967. Thereafter, a stronger version of socialism was adopted. Second major attempt was in 1985 by prime minister Rajeev Gandhi. The process came to a halt in 1987, though 1966 style reversal did not take place. The fruits of liberalisation reached their peak in 2007, when India recorded its highest GDP growth rate of 9%.[7] With this, India became the second fastest growing major economy in the world, next only to China.[8] The growth rate has slowed significantly in the first half of 2012.[9] An
Though economic liberalization in India can be traced back to the late 1970s, economic reforms began in earnest only in July 1991. The reforms initiated by former Prime Minister Narasimha Rao and former Finance Minister Dr. Manmohan Singh in July 1991 represent a watershed in India's economic development strategy and policies since independence. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package.Though the foreign-exchange reserve recovered quickly and ended effectively the temporary clout of the IMF and World Bank, reforms continued in a stop-go fashion. To understand how much of a break from the past the reform programme represents, why it was called for, and what brought it about, and indeed in understanding why some components of the programme, such as privatization for example, have not made as much headway as others and are facing significant resistance including from some of the constituents of the United Front, one has to go back to the pre-independence roots of Indian economic development strategy.
Economic liberalisation in India
From Wikipedia, the free encyclopedia
The economic liberalisation in India refers to ongoing economic reforms in India that started on 24 July 1991. After Independence in 1947, India adhered to socialist policies. Attempts were made to liberalise economy in 1966 and 1985. The first attempt was reversed in 1967. Thereafter, a stronger version of socialism was adopted. Second major attempt was in 1985 by prime minister Rajeev Gandhi. The process came to a halt in 1987, though 1966 style reversal did not take place. The fruits of liberalisation reached their peak in 2007, when India recorded its highest GDP growth rate of 9%.[7] With this, India became the second fastest growing major economy in the world, next only to China.[8] The growth rate has slowed significantly in the first half of 2012.[9] An