Economic Reforms of The 1990s

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ECONOMIC REFORMS OF THE 1990s
BACKGROUND
 From all accounts, 1991 was one of the most significant turning points for the Indian economy.
 The nation charted a new path moving towards a liberalized and market-driven economy and
greater integration with the global economy. The country was then on the brink of a deep crisis
on many fronts.
 The balance of payments position was precarious and international confidence in our economy
had eroded considerably.
 Despite large external borrowings, there was sharp reduction in foreign exchange reserves and
there were strong inflationary pressure. Before examining the various aspects of the critical
position in which the country found itself and the measures taken to tackle them, it is necessary
to look at its genesis and the factors which led to the crisis.
REFORMS AND PROBLEMS DURING 1985-90
 The decade starting from 1980 was relatively better for the economy. While the annual rate of
growth of GDP for the preceding 30 years (1950 to 1980) was only 3.52 per cent, while is
cynically referred to as The Hindu rate of growth during the decade 1980-81 to 1989-90, the
annual rate of growth was 5.13 per cent. Also, while the per capital GDP increased at an annual
rate of 1.37 per cent during 1950-51 to 1980-90, the same increased at an annual rate of 1.37
per cent during 1950-51 to 1980-81, the same increased during the period 1980-81 to 1989-90
at an annual rate of 3.09 per cent.
 Food grains production which stood at 50.8 million tones (MT) in 1950-51 had reached 129.5
MT by 1980-81 and 145.5 MT by 1984-85. In the 1980’s, the industrial sector was impressivel
compared to the 70’s. The annual growth rate of manufacturing sector was 7 per cent and of
registered manufacturing 8.1 per cent. Against such benign growth environment, the Seventh
Plan (1985-90) started on an optimistic note.
 The Government under Rajiv Gandhi (1984-89) initiated several reform measures. These
included reducing state control and regulation of the private sector, greater freedom to import
even capital goods, liberalization in the application of FERA, and the operation of companies
under MRTP Act. In short, it aimed at replacing government control by market forces.
 But there were also many ominous signs on the fiscal front which became visible during this
period. Prudent fiscal management required that revenue receipts not only meet revenue
expenditure, but also generate surplus the finance the Plan and other capital and development
outlays. But all through the 1980’s, the government revenues fell short of expenditure. The
gross fiscal deficit as a proportion of GDP increased from 5.4 per cent in 1981-82 to 8.0 percent
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in 1989-90. The fiscal imbalance persisted and worsened during the 1980’s, as the gross fiscal
deficit, on an average, rose from 6.3 per cent in the Sixth Plan Period (1980-85) to 8.2 per cent in
the Seventh Plan Period (1985-90).
 Another distributing trend was that almost throughout the 1980s, non development
expenditure increased faster than development outlays. While the non development
expenditure in 1990-91 was about 5.5 times the 1980-81 level, development outlays increased
only 4.4 times. It indicates that long-term development of the country received less priority.
 Another adverse factor was that the relative share of direct taxes in the total tax revenue
continued to decline while the share of indirect taxes, the burden of which falls mostly on the
masses, showed increase.
THE 1991 ECONOMIC CRISIS
Background to the Crisis
 The process to reform the economy had begun from the mid-eighties under the Rajiv Gandhi
government (1984-89) whose vision was to take India to the 21th Century. With a view to
modernize the economy, boost investment, and achieve rapid industrial growth, many controls
and restrictions were removed, industrial licensing policy was revamped, and greater role was
accorded to the private corporate sector. Import controls were relaxed to upgrade industrial
technology and improve capacity utilization and productivity.
 However, towards the late 1980s, macroeconomic imbalances began to emerge. The fiscal
deficit of the Central Government, which is a measure of the difference between revenue
receipts and total expenditure, was over 8 per cent of the GDP in 1990-91 as compared with 6
per cent at the beginning of 1980s and 4 per cent in mid-1970s. this deficit had to be about 55
per cent of GDP. By 1990, the deficit of the Central Government had mounted to Rs. 13,000
crore as a result of revenue shortfalls and expenditure overruns. Productivity of investment
was low and there were poor rates of return on past investments.
 On the foreign exchange front, the balance of payments position came under severe stress.
During the eighties, India’s imports were more than what could be covered by the exports and
normal aid on concessional terms. The current account deficits had to be financed by borrowing
from abroad on commercial terms both from the capital market and non-resident Indians
(NRI’s). The external debt which was $22.8 billion in 1983-84 had risen to $69.3 billion in 1990-
91. The burden of servicing the accumulated internal and external debt became onerous. This
was further exacerbated by the steep increase in oil prices and disruptions caused by the Iraqi
invasion of Kuwait in August 1990. With the disintegration of Soviet Union in December 1991,
India lost a major trading partner.
 The persistent fiscal imbalances accentuated inflationary pressures. That inflation was
concentrated in essential commodities, despite good monsoons and good harvests in the three

preceding years, was of greater concern as it hurt the poorer sections the most. Besides all
these, there was political instability at home-there were two changes in the Government at the
Centre between December 1989 and June 1991.
 All these led to considerable erosion of international confidence in our economy. Despite large
borrowings from the International Monetary Fund (IMF) in July 1990 and January 1991, the
foreign exchange reserves had touched rock bottom, and it was barley enough to meet the
needs of two weeks of imports. Foreign commercial banks had stopped lending to India and
NRI’s were withdrawing their deposits. Shortage of foreign exchange forced massive import
squeeze which further impeded the industrial growth.
 Due to the combined effect of all these, the nation was on the brinks of a major crisis which
called for drastic remedial measures.
The Turnaround-The Reforms of 1991
 It was against this grim background that a newly elected Government headed by P.V.
Narasimha Rao took over in June 1991. He at once set about the task of pulling the economy
back from the brink, and appointed Manmohan Singh as the Finance Minister. The new
Government initiated a number of radical measures to bring about macroeconomic stability
and address the balance of payments crisis through fiscal consolidation and tax reforms. Urgent
steps were taken to avert default in international debt obligations and to control inflation. A
decision taken earlier to use part if the gold held by the Reserve Bank of India to mobilize
temporary liquidity abroad was implemented, but as planned the gold was redeemed as soon
as the foreign exchange position stabilized. The situation also called for credible fiscal
adjustment followed by fiscal consolidation.
 This involved progressively reduction the fiscal and revenue deficits of the Central Government
and reduction of current account deficit in the balance of payments. The aim was to contain the
unfettered rise in internal and external debt and thus limit the burden of debt servicing. Efforts
were made to raise more resources internally without burdening the poor.
 The steps taken by the new government to tackle the balance of payments crisis involved both
short-term and long-term measures. Devaluation of the Rupee by about 18 per cent was
effected in two steps on July 1 and 3, 1991. International Monetary Fund (IMF) and the World
Bank which had to be approached for a major loan had stipulated that economic reforms be
undertaken to revive the economy. As a result of short-term measures proposed to be put in
place, the country was able to raise funds from the IMF and other aid agencies. It helped to tide
over the crisis and restore international confidence in the country’s economic management.
 At this juncture, concerns had been expressed whether the country implemented these reform
measures at the dictates of IMF and the World Bank who were approached for financial
assistance to tide over the crisis. The Government had clarified that the discussion held with the
lending institutions were only on the amount and type of assistance and the valid down and
accepted for the assistance was sought. The conditions laid down and accepted for the
assistance were only in consonance with the reform programme already envisaged and drawn

up by the Government, and which formed part of the party’s election manifesto. Thus, it was
contended that the country’s national interests or sovereignty had in no way been
compromised.
THE NEW REFORM MEASURES

New Trade Policy
 As part of the reform measures, a new Trade Policy was drawn up in 1991. It marked a radical
shift from the Import Substitution policy which India had relied on far the last four decades.
While it may have been necessary in the very early stages of development to protect our
nascent industries from foreign competition, in the long-term it provided to be neither efficient
nor one that helped the industry for its robust growth. In fact, in contrast, the East Asian
economics which took to the path of ‘Export Promotion’ strategy in 1970’s forged far ahead of
India in development.
 It was, therefore, realized rather quite belatedly, that the time had come to open up the
economy and expose Indian industry to competition from abroad in a phased manner. With this
in view, the Government introduced changes in the Import-Export policy, liberalized import
licensing, optimally reduced imports, and aimed at vigorous export promotion. The two-step
devaluation of the Rupee effected in July 1991, referred to above, and easing of the
replenishment licence system were two major steps in Trade Policy reform. It involved a
transition from a regime of Quantitative restrictions (QR’s) to one of price-based mechanism.
Measures to Promote Exports
 The trade policy was further revamped in 1992. A system of partial convertibility of the Rupee
on the Current Account was introduced. Under this system, all foreign exchange earned
through exports of goods or services, or remittances, could be converted into rupees. 40 per
cent of the foreign exchange could be converted at the official exchange rate while the
remaining 60per cent was to be converted at a market-determined rate. The foreign exchange
surrendered at official exchange rate could be used to meet the foreign exchange requirements
of essential imports like petroleum, oil products, fertilizers, defense, and life-saving drugs.
Imports of raw materials and capital goods were made freely importable on Open General
Licence (OGL) but the foreign exchange required for these had to be obtained from the market.
There was only a specified ‘negative list of raw materials and capital goods which available also
to Indian workers working abroad who were making considerable amount of remittances and
thus making valuable contribution to India’s foreign exchange earnings.
 Earlier, to provide incentive for exports, a complex scheme of import replenishment was in
vogue under which an exporter was allowed to import certain raw materials and components
equal to the actual import content of exports. Also, there was a components cash support
scheme to compensate for taxes not refunded under a duty drawback scheme (i.e., refunds of
indirect taxes including import duties on inputs used in exports) and losses incurred on exports

when domestic demand was inadequate to use installed capacity fully. By eliminating import
licensing and introducing partial convertibility of the Rupee, the reforms got rid of these
complex web of incentives with varying rates for different commodities which prevailed under
the import replenishment and compensatory cash support schemes.
Removal of Import Controls
 These reforms removed import controls which had earlier resulted in inefficiency, bureaucratic
delays, and left scope for corrupt practices. Trade policies were further modified and refined in
subsequent years. Import licences were further modified and refined in subsequent years.
Import licences were eliminated on most items of capital goods, raw materials, and
components. These items became freely importable against foreign exchange purchased in the
market. The system had worked fairly well and the market exchange rate had remained
remarkably stable. It created an environment in which Indian entrepreneur had the flexibility
needed to compete with other developing countries in the world markets.
 However, the existence of a dual rate hurt exporters and other foreign exchange earners who
had to surrender 40 per cent of their earnings at the official rate and getting the benefit of
higher market rate on only 60 per cent. Exporters represented that this amounted to a tax on
exporters at a time when they needed full support. The Government considered this and
finding that the balance of payments could be reasonably managed with a unified exchange
rate, the dual rate arrangement was dispended with. All exporters as well as foreign exchange
earners like Indian workers abroad were allowed to convert 100 per cent of their earnings at
the market rate. All imports were also liable to be paid for the market rate.
Other Important Measures
 Several other steps were also taken in 1993-94 to promote exports. Various restrictions on items
of export were removed. Reserve bank of India took steps to ensure availability of adequate
credit for export. Banks were asked to see that credits given for exports amounted to at least 10
percent of their total advances. The interest rate on rupee export credit was reduced by one
percentage point. Further, banks were exempted from levying interest tax on export credit
provided by them.
 In order to promote new investment in industry, the customs duty levied on capital goods and
import items for projects such as general machinery was progressively reduced from 1993-94.
These duties were quite high compared to what was prevailing in competitive countries. This
was to benefit critical sectors like power, coal mining, and petroleum refining. At the same time,
to ensure that the lower duties on imported machinery did not hurt the domestic capital goods
industry, import duty on components were also lowered to enable our domestic manufactures
to compete effectively. Duties on many other capital goods, metals, and chemicals were also
reduced and rationalized to help domestic industries.

 To promote the electronics industry which was a major provider of employment and with much
potential for export, and to make it world class, rates of duty for project imports, raw materials,
and components were brought down.
The New Industrial Policy
Introduction
 Another major plank of the structural reform was opening up the industrial sector to infuse
new dynamism into the economy. It was felt that the industrial sector faced many constraints
and there was much scope for upgradation of technology, improving quality standards and
reduction in costs which would increase the efficiency and competitiveness of the Indian
industry and benefit both the producers and the consumers. Restrictive policies like barriers to
entry and limits on the size of firms had shackled industry and led to a degree of monopoly in
the sector by facilitating foreign investment and infusing foreign technology to increase
productivity.
Delicensing
 Industrial licensing was abolished for all industries except for a short list of 18 industries
involving security and strategic factors, social considerations, hazardous and environmental
aspects and those producing items of elitist consumption. Later, more industries were
delicensed and presently compulsory licensing applies only to six industries. Coal and lignite
have also been removed from the list of industries reserved for the public sector.
 Industries reserved for the small scale sector continued to be so reserved. The removal of
licensing was to benefit particularly the many dynamic small and medium entrepreneurs who
had been hampered by the licensing system. Also, this was to make industry more competitive,
more efficient and modern, and take its rightful place in the world not to apply to the small-
scale units taking up the manufacture of any of the items reserved for exclusive manufacture in
the small scale sector.
Promotion of foreign investment
 For promoting foreign investments in high priority industries, requiring large investments and
advanced technology, direct foreign investment up to 51 per cent foreign equity in such
industries was allowed. Also, foreign equity up to 51 per cent was allowed for trading
companies primarily engaged in export activities. Foreign investment would facilitate
technology transfer, help to enhance productivity, nurture better management practices, and
provide greater access to world markets. High priority industries could get automatic approval
for entering into technology agreements and were allowed to negotiate the terms of

technology transfer directly with their foreign counterparts according to their own commercial
judgement.
Promotion of exports
 For promoting exports of Indian products, which required interaction with some of the world’s
largest international manufacturing and marketing firms, services of foreign trading companies
were to be availed to assist us in the export activities.
MRTP Act
 The Monopolies and restrictive Trade Practices Act (MRTP Act) which came into force in 1970
had over the years hampered industrial growth and expansion. To foster healthy competition,
achieve economies of scale, and enhance productivity, it was imperative to remove interference
by the Government, through the provisions of this Act, in decisions of large companies
regarding investment, capacity addition, etc. the legal provisions for getting prior government
approval for expansion of existing undertaking and setting up new ones was removed. The
accent was to be only on controlling unfair and restrictive business practice and the MRTP
Commission was empowered to investigate and act on such practices.
 The MRTP Act was later repealed and replaced by the Competition Act, 2002.
Strengthening the Public Sector
 The Industrial Policy Resolution of 1956 had given the public sector a strategic role in the
economy. Public sector enterprises have been set up in key sectors such as steel, power, heavy
engineering and heavy electrical, telecom, defence, aircraft manufacture, etc. massive
investments were made over the past four decades to expand the public sector which has
come to occupy a commanding role in the economy. However, while some of the public sector
units have played a notable role in the country’s development process, many of them face a
plethora of problems such as lagging productivity, lack of R & D and technological upgradation,
low returns on capital invested, and HR and labour issues which have retarded their progress.
Many of them were also considered sick units which called for some drastic measures. The
government considered the need to reinvigorate them and hence took certain steps under the
Industrial Policy of 1991.
 Specified sectors of the economy were reserved for the public sector. These were:
(i) Essential infrastructure goods and services;
(ii) Exploration and exploitation of oil and mineral resources;

(iii) Technology development and building of manufacturing capabilities in areas crucial for
the long-term development of the economy and where private sector investment is
inadequate; and,
(iv) Manufacture of products where strategic considerations predominate such as defence
equipment.
 Government would strengthen those public enterprises which fall in the reserved or high
priority areas that have successfully expanded production, built up technical competence, or
are generating profits. Such enterprises would be given much greater degree of autonomy.
Competition will also be induced in these areas by allowing private sector to participate. And in
the case of enterprises which have been chronically sick and incurring heavy losses, part of
Government holding in their equity share capital would be disinvested in order to provide
market discipline to their performance.
IMPACT OF THE REFORMS
Broad Indicators
 Some of the indicators of the progress of the economy are the growth rate of Gross Domestic
Product (GDP), the changing sectoral composition of the GDP, and the standards of living of
the people as reflected in the quality of life. The growth rate of the economy had fallen to less
than one per cent in the crisis year 1991-92 but rebounded to 5 per cent per annum in 1992-93
and 1993-94. It further accelerated to 6.3 per cent in 1994-95.
 While the annual average growth rate during the decade 1980-81 to 1989-90, the pre-reform
period, was 5.18 per cent, the average rate for the period 1993-94 was 6.8 per cent based on
the new series of GDP
Sectoral Share in GDP
 The sectoral share in GDP of the three sectors – primary which includes agriculture, fisheries,
and forestry, secondary which includes industry, manufacturing, and mining and tertiary which
includes all services such as banking, insurance, transport and communications, constructions
and real estate, hotels, trade, etc is an indication of the progress of the economy. Between
1980-81 and 1990-91 (pre-reform period), share of primary sector declined from 38.1 per cent
to 34.0 per cent, that of secondary declined marginally from 25.9 per cent to 24.9 per cent,
while the tertiary sector showed perceptible increase.
 While the share of agriculture has been steadily declined and that of services rising consistently,
the share of industry had been sluggish and fluctuating which had fallen below one per cent in
1991-92 to 2000-01). Industrial growth which had fallen below one per cent in 1991-92, showed

broad based recovery by 1994 and rose to 8.7 per cent. Manufacturing sector grew even faster
at 9.2 per cent in 1991-92 and at 10.6 per cent in 1996-97.
 The growth rate of agriculture and allied sector was 3.6 per cent in the Eleventh Plan (2007-12)
as against 2.5 per cent and 2.4 per cent respectively in the Ninth Plan (1997-2002) and Tenth
Plan (2002-07). As for the industrial growth rate, after a decline of 0.8 per cent in 1991-92, it
rose to 2.2 per cent in 1992-93, 8.6 per cent in 1994-95, and 10.6 per cent in 1996-97. During
the Ninth Plan, industrial growth declined to 4.3 per cent but recovered to touch 9.4 per cent in
the Tenth Plan. And again it recorded only 7.9 per cent in the Eleventh Plan. The deceleration
and fluctuation in industry is due to structural and cyclical factors affecting business, lack of
domestic demand in case of failure of monsoon which adversely affects the rural sector, which is
a major source of demand for manufactured items, and lack of demand for items of exports. But
it can be said that the New Industrial Policy has helped to reinvigorate and energize the
industrial sector.
 The services sector has shown steady growth both in regard to its share in GDP as well as rate of
growth. Its share in GDP which was 48.5 per cent in 2000-01 has risen to an estimated 59 per
cent in 2013-14. It recorded a growth rate of 7.9 per cent in the Ninth Plan, 9.3 per cent in the
Tenth Plan, and 10.1 per cent in the Eleventh Plan.
Employment pattern in Sectors
 From the above account, it will be seen that there have been significant changes in the sectoral
composition of GDP which is a positive indication of economic development. Though a vital
sector in the economy, the share of agriculture has steadily come down and the contribution of
industry and services to GDP has been going up. However, the declining share of agriculture in
the national income has not been accompanied by corresponding decline in the workforce has
still not removed to non-agricultural occupations and the pressure of population on land
continues. It also indicates that there is disguised and under-employment in the sector resulting
in low productivity per person engaged.
 The percentage share of agriculture in total workforce declined only marginally from 72 per cent
in 1951 to 69.8 per cent in 1971, 66.7 per cent in 1981, and 64.75 in 1993-94. Though it has
further declined, it still provides employment to about 55 per cent of the workforce in the
country. Employment in industry has also been hovering from 12.43 per cent in 1993-94 to 12.1
per cent in 1999-2000. In 2012-13, it stood at 11.9 per cent. Whereas it is the services sector
which has provided more additional employment the shares of the services (including
construction sector) in employment increased from 22.82 per cent in 1993-94 to 34.90 per cent
in 2009-10.
 Though employment levels have gone up, it has not kept pace with the increase in the labour
force resulting in creeping unemployment. Also, the qualitative nature of jobs in the
unorganized sector where labour laws and working conditions may be lax.
 All this part, a major challenge confronting the country is the huge number of youth entering the
labour force. An estimated 12 million persons will be entering the job market each year an

average of one million every month for the next ten years who have to be provided
employment. This is a major challenge for the present and future governments.
Impact of Reforms on Poverty
 One of the primary aims of India’s economic policy right after Independence has been to
achieve growth with equity and social justice. This was natural considering the all pervasive
poverty and widespread inequality which persisted in the country. Though several measures
such as rural development and anti-poverty schemes have been implemented to remedy this,
both poverty and inequality continue to be a challenge. There have been different studies and
surveys on ascertaining number of people who live below the ‘poverty line’. According to data
released by National Sample Survey Organization (NSSO) and erstwhile Planning Commission,
the percentage of population below the poverty line was increasing day by day
 Economic reforms measures coupled with poverty alleviation programmes like Mahatma
Gandhi Rural Employment Guarantee Scheme (MNREGS) have helped to lift a significant
section of the population above the poverty line. The extent and spread of it, however, has not
been uniform. As a result of much of the reform measures being directed at the organized
sector, its effects are felt first on the urban organized sector, next on the urban informal sector,
and then on the rural sector. The rural sector is influenced more by the anti-poverty schemes
which make a direct impact on the income and living conditions of the rural poor. Another
significant factor impacting the rural population is the state of agriculture which again is largely
dependent on the monsoon and various other factors.
 There is also concern that following the implementation of reforms, inequality between
different segments of society has widened. This can be remedied only through a vigorous
process of growth with equity, more investments in the social sector education, public health,
and housing directed to benefit particularly the lower sections of the population, and
redistributive measures through fiscal policies.
Focus Point
 To sum up, the result of 1991 reforms has been a mixed one. While it has certainly opened
up the economy after decade of keeping India as a ‘protected and virtually closed
economy’ on the plank of Import Substitution policy, and has helped to integrate it with the
global economy, India has not been able to realize the full potential. This is despite having a
large technically skilled workforce and oppurtunities of building a robust manufacturing
base as China did over the last two decades. In hindsight, precious time and ground has
been lost and now India has to compete with other developing countries in East Asia and
Latin America. There is urgent need to push for another round of major reforms which the

present government has embarked upon. But in the democratic framework in which the
country is placed, there are many legislative and political roadblocks which are already
playing out and due to delays caused by them, the country may be forced to pay a heavy
price.
Key Lines in examination point of view
 In 1991 was a major turning point for Indian economy; precarious balance of payments position
and inflationary pressures.
 1980s started on a good note – higher GDP growth rate, comfortable food position and
industrial sector looking up; liberalization measures undertaken by Rajiv Gandhi government.
 But problems were building up; considerable increase in gross fiscal deficit and worsening fiscal
imbalance persisted; increase in non developmental expenditure added to the problems.
 Factors which led to the 1991 economic crisis higher fiscal deficit and unsustainable internal
public debt; foreign exchange position became critical resulting in erosion of international
confidence; inflation was hurting the poorer sections.
 Radical reforms were initiated in 1991 by the government under Narasimha Rao to achieve
macroeconomic stability; measures included containing fiscal deficit, improving balance of
payments position; rupee was devalued in two steps and funds raised the IMF and other
sources.
 New trade policy drawn up replacing the ‘import substitution’ policy followed hitherto; imports
were liberalized and several measures were taken to vigorously promote exports; the economy
was steadily opened up.
 New Industrial Policy was introduced which included industrial delicensing, except in strategic
sectors; foreign investment was promoted to help industries upgrade technology and enhance
their competitiveness; the MRTP Act was repealed and Competition Act of 2002 enacted; public
sector units performing well were to be strengthened while sick units were to be subjected to
disinvestment.
 Growth rate of the economy improved by 1992-93 and again in 1994-95; there were fluctuations
in industrial growth due to cyclical factors, but overall, industry benefited from the new policy;
services sector also made steady advances with its share in GDP touching 48.5 per cent in 2000-
01.
 Significant changes were taking place in sectoral shares in GDP; share of agriculture was
declining and that of industry and services were going up; but these changes were not reflected
in a commensurate way in their shares in employment; agriculture continued to support 55 per
cent of the worlk force while employment in the services sector showed substantial increases;
that in industry was rather stagnant.
 Providing employment to the huge numbers of youth joining the labourforce, a major challenge.

 Impact of reforms on poverty; despite many rural development and antipoverty programmes
launched, poverty continues to persist through the number of those below the poverty lines has
been coming down; there is also concern about widening inequities in society following the
reform measures.
 While India did integrate with the global economy, she has not been able to realize the full
potential from it unlike Chain could do over the last two decades; India lost precious time in the
process and has now to compete with other emerging nations; India’s legislative and political
roadblocks also hamper rapid development.

Economic Reforms of The 1990s

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ECONOMIC REFORMS OF THE 1990s

REFORMS AND PROBLEMS DURING 1985-90

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THE 1991 ECONOMIC CRISIS

Background to the Crisis

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The Turnaround-The Reforms of 1991

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THE NEW REFORM MEASURES

Measures to Promote Exports

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Removal of Import Controls

Other Important Measures

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The New Industrial Policy

Promotion of foreign investment

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Strengthening the Public Sector

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IMPACT OF THE REFORMS

Sectoral Share in GDP

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Employment pattern in Sectors

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Impact of Reforms on Poverty

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Key Lines in examination point of view

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