ECONOMIC REFORMS IN INDIA SINCE 1991 HAS GRADUALISM WORKED

Submitted To : Mr. Rajendra Jha Submitted By : Raushan kr. Shikha Shreya Akancha Anita Anshika Shivangi Suman

INTRODUCTION
India was a latecomer to economic reforms, embarking on the process in earnest only in 1991.
India took some steps in this direction in the 1980s, but it was not until 1991 that the government signaled a systemic shift to a more open economy with greater reliance upon market forces.

CONTD
In sharp contrast, growth in the 1990s was accompanied by remarkable external stability despite the east Asian crisis. Indias economic performance in the postreform period has many positive features. The average growth rate in the ten-year period from 19921993 to 20012002 was around 6.0 percent, as shown in TABLE which puts India among the fastest growing developing countries in the 1990s.

Indias Growth Performance

YEAR
1991-1992 1992-1993 1993-1994 1995-1997

Total GDP Growth

1.3 5.1 5.9 7.8

Agriculture
-1.1 5.4 3.9 8.8

Industry
-1.0 4.3 5.6 7.7

Service
4.8 5.4 7.7 7.2

1998-1999

6.5

5.9

3.8

8.3

1999-2000
2000-2001 2001-2002

6.1
4.0 5.4

1.4
0.1 5.7

5.2
6.6 3.3

9.5
4.8 6.5

CONTD
Policy changes has reforms in five major areas covered by the reform program: fiscal deficit reduction, industrial and trade policy, agricultural policy, infrastructure development and social sector development.