The Indian Economy Since 1991, 2nd Edition

1

Overview

B. A. Prakash

The Indian economy had experienced an unprecedented economic crisis during the early 1990s. The balance of payments situation was precarious. There was a sharp decline in foreign exchange reserves and capital inflows through commercial borrowings and non-residents deposits. The country was experiencing large and persistent macro-economic imbalances, low productivity and a low rate of return from investment. The fiscal deficit of the central and the state governments reached an alarming level. There was a steep rise in external and internal debt. The country began to experience double-digit inflation. This was the context in which the then Congress government implemented the Structural Adjustment Reforms in 1991. The thrust ...