The Indian Economy Since 1991, 2nd Edition

2

Economic Reforms and Performance of Indian Economy

B. A. Prakash

2.1 Introduction

Following the unprecedented economic crisis of 1991, the Government of India announced a package of major economic policy reforms aimed specifically at macro-economic stabilization and restoration of the growth momentum in the economy. A three-pronged approach has been followed to achieve stabilization, restructuring and globalization of the Indian economy. Firstly, the stabilization of the economy implies balancing of the aggregate demand and supply by reducing the mounting budget deficits of the central government. Secondly, it implies restructuring of the Indian economy to make the Indian industry internationally competitive through industrial and foreign trade ...