PREFACE

As pant of he8 A-LLB (Hons) Cuniculum

haue psepaned Hhis psojece which
hashelped me to Undestand he
conomic Ke fosms in ndia , Since 199
In his psoeccE
L haue included voni ous
aspects aboUt
utthis topic and haue
+sied to
ThiS psoect
sepsesent
contains
hem in hne monneSn
detailed infos maim
about his
topic and also includes many
selevant Facts sela-ed L I haue
tsi ed to sepsesent them in psope
mannei and hope that mmg
saisfactos

unuchi SUmon
Ensol)ment no. USB2O1312S 12S
B. LLB CHons)
Semesten-2
(2020202S
 JECLARATION
heneby declane that he psQject seposte d
inhe A LLe(Hons.), psgject enit)ed

heeconomic Refosms in India,Since i991

Submitted at Centsal Univensity OF South
8ihan is an
auhenic secosd of my SoSK
Canied out unden he &Upevisiom oP
D Sanjau kuman Sis
I have not Submitted his
wosK else ushene . This is
Fsee aplagi anism
Lam Fullu sesponsible Fos
he contents of my Psoj ect

puchi Suma n
Ensollment No CUSB 201312Sizs
0-A LLB LHons)
Centsal Univensiy of Sooth Bihan
 ACKNOWLEDGTEMENT
A Psoject S a joint endeavos uwhich i s to e

qccomplished Sith Utmost C o mp o a s s i o n , e l e l b

diligence and usith soppost of a Fisstiy

0ould ike to give a lot oF hankS to
bes pected D SSanjay KomanSi8, fos his shousen5
of ble ssings hsouahout
SSignment OoskK
ohich helped me n
Compleing he
aSsianrnent Successtullu
am
ectsemelu sate fol to M Panents to
Fos
hei8 ove, psayens, Cone and Sacsi Rces tos

educaing and poEpanina me fos my Fotune

1am much hankful to usiends and
Colleagues fog heis loue, undeistanding,
psayens and
Conhnuing Soppost to Com plete
his assianment

Thank Youl

Sunuch Suman
Ensoll No. CUSB201312S12S
BALLB CHons)
Senes) -
(2020- 202 S)
 CONTENT
cconomic Re Fosm S
ntsoduchom
2) Obechve of tconorni C RefosmS

3) Cause OF tconomic Refos mS

4) Libenali saham
Psivahsahon
6 Clobali sah
Assessment Of h e RetosmS in
Indian Conom y

8 Conclosi an

Bibli easaphy
 INTRODUCTION the mixed
Since independence, India fo Ilouwed
economY FanmeusoskK by combin ng he advantages
of both capihali st and Sociali st (planned
economiC he
ystem Thi s policu sesuted i
establishment VanioUS ulesS and as
which wene aimed at
Contsollinam a ian d
3equlahng he economy became o g hindgancEs
in gso t h and develop ment oF he economu
of India initiated aA
n, 199 the aouennmenE
Sesies of e c o n o m i c efosns due to a inancial
som 'inteanmati on a) osganisations
CsisiS and psessu
and IMF.
ike wosld Bank

In genenal teminology economC TeFosms sefens to

that psoceSS
Unde hich Changes h e set of

policieS som one ime peniod to anothen. Econormic

sefosmS n India indicate a policies meaS n eS
intsoduced Since 1991 UIe to impa ovE
he level oF efkciency, Psoduchviy and psohtabi lity
in thne economy Economic sefosms sefns to the
intsoducion oF nouative poicies Such as eliminahnq
he manket ba1s enS,
Paicipaion +som PsiVate
encousiagina economi C
the
se seducina
Ascal deicit, incseasinq
impostS etC Fos eposts and seducna
oF he
incseasing he soLoth sate
econom
Since 19a h e aovesnmment of
has been ndia
FollOoing
Follooing the policy
ofibeali3ahon,
and Cobali
sahon These Policy is Psiati2oah on
Knouwn as LPG Modal of Popu laniy
moive of his modal sowth The main
Coea binq o asooth 1S ouoandS
So asS Compehhve envisonmeht n he ecanomy
psoue he
of he Econom pSoduchui and
efhciencu
 Refosms
*Objectives OF Economic
sesouTces
Fos
To make Use oF lobal
CountsyS Own development:
Economy Competiive
To make he Indian
of hdian
sate
To accelesale he Asowth

economy mose
To build he Indian Poduchom entespsi SeS

eficient and highly P3oductive

To impsouE he Rscal disci pline
T o mpsoUe he oseign ecchange eseaue
Refosms in Tndia
Causes oF Economi c

Causes of Economic Refosms

(S) Risinq paiceS

D, (Mouting
Joveinment
of essenhial
dood sS
Fall in Foseign debts
cachange sesesues

( Pdvense Balance
2Financial
CasiS
Paments
OFall in foseign Erchange sesesves o
In 199 India met w i h Fosei8hn ecchange
etenal debt Csi Si s
q The aoueinment was not abe to m a k e
Epaments on t s b o s s o i n a s F s o m a b s o a d .
b) The
FOseign excheange seseaves declined to a
level Hhat not adequate -

to ance
imposts fFos mose Hhan Euwo ueeks
pay pay he intesest Hhat needs Fo be pad
paid
intenahonal endens
inanfinancia) Cssis caISIS Can be
The s1in oF he Ananci al
mana ement oF
tsace d fsom he ine fhcient
in Hme 1q&OS.
the Indiann econom that evenS

Develop ment Policies Seqoised

ow he ovenment
thouan he sevenues ese veny
sevenue to meet chalenges
had tod Ovensho ot itS
and
po polahon explosiom:
Ke unemploment Pouenty
On development
he coninued spendinq not aenenate
ovenmenE
did
PsOgsamme S oF he

Qddii onal seve h u e

not able D
ouenment uaS
Moseoven, h e in tesnal
Sufheient
oevenue Fsom
genesate
Sounces Svch oS
AOvennmenE wgs Spendna alange shane
Tne PsOvIde
aneaS s h i ch do mdt
On
of t s inc Hhe SoGal Sectoa
imme di a t e setnns Soch

and de len c e
SectosS un dentaking
Fsom public
The income
to meet
CPSUs) was aiso not venA high
asouing ependi twe
the
exchange boss awed som
Hence, ouO Foseig hah onmalHn ancial
Othe Countsies and n tes

inshtions, Spent on meetnq

Consum phi m needS
Mouningn Hhe
aouenmenE debts '
ate 1980s aovesnnmermt eipend t u e
begon o exceed ts Geuenoe by Such age
manains meehna Hhehat e x pendi t u n e

hsough bossoOmgs became Onsostainable

Moseoven mo
attempE ,
madee seduce sucb
psofliaate aoves1nment
I 4Advense Balan ce of Spending
Imposts
Payments-
3seu at oA sate s i tho s t
Uen
matching 9souh of
eposts Sloto sosh
eposts due ouo giy and hiah
psice S F Andian oods h e intexnational
im
manKet AISo, o SuFRi ent attenhon
iven to boost expostS to P a Fos he
gsOusing mpoxtS
SRising paices
The economi csisiS
essenial
es of goocs n then
psices, Psices of
Compounded bu
ang essenial
sising3
aod S0s e Shanpl u e to
pai v a E e OS weilaS Public
inefiCiencies n Euen
asiffS
Secto psoduch o m a n d niah
On
e ssehal impoxtS
and taq in he2
iS an impoatant
1901
The g ean post-independent f ndianh
of
e Conomi C histos sent hsg
econ omy The Indian econom
C Sevese ecomom CaS S S g a e ed b
Sesi aUS balance of Pa ents5 Situah om on
economiC souoh, D ehciE i n Fuseign Csency
D industsial so m etc
Slowdown In

The csises fosced Indi an EconomYto

hanges in he
intsodUce some
ndam ental
Content of economic Policy
and
aPpsoach
 The ovenment hsough N e w EconomC Policu
ntsodced wide sange e c o n omic
sefosms The highliahts oF NEP e
Dbeyali 3aiom, PsivDh
3ah on, anG lobaliaahom
It
in
aimed
Hhe
Fo cseate a Competi Hve SOssoundina
coont and tD hat
Soght semove
Hhe tsade
achi eve
o new
ams These Polici es bassie&S
n ene cateqosi2e
Sphes1eS KnouSn as
O Stabili3ahan Measunes
2Stzuctuna Rerosm Policies
*Stabili3ahom Measunes ane snoxt-esm
the
addsessing Some oP
Policies aimed at oFPauments ana
weaknesses in h e balan e
bainging i n f a h a n onden Contsol (Fox examPe
s efens to'
depseciahan of the sUpee hicn
he 3upee as a
decea se in the value of
intems of Foxeian CuBsEC
domeshC COUencu
ong-tesm
*auctunal Re Fosm police oF he
effex tS to Impsove the efkcency i n nu m en ovs
xemoUna igidhes
econonmybu e conOmu and enphan einaR
SectoES he
'tS intenaionoal Com peh h u e n e s s anea S F he
Indian economythgouah a set of Polici eS
divided ino hx ee categosie S o tbesalizatiom,
Psivatisaion, and 2obal3aham
OLbesalisati on
Stsvctinal
Refos m
Measnes
Paivatisati on

NeD Economic
Globalisation
Policy Measunes

Srabalisation
Measune Dealuation of
Rupee
Liberali satian
The basic Gim of l i b e a l i s a i o n is o
end he
developmeht
in
estsichons uhicm become h w i d l e s hese is a
and asouth of nahom meanS
Fsomn
a o v e n n m e n
Ovenment
eiminahom On Contsol oF
and
businesS Ules and eulaion business afhaias,
psivate
will not intesfene im he fewen
with
They Can tsade ndependently autonom
a 9seate
sestsichonIF implies deciSim-
making
in
to the business entenpaises inteFenen ce

and 3emoval of
O u e n m e E

0bjectives of Libesalisahon
To evelbp manket oF Count8
and imcsease impos t
foseign tsade
To psomote
and
expoat in COuntIY CFDI)
Investment
disect Capikal
To bsing Foseign and foseian
Fsom C o u n t Y
m p a o v e m e n t
of technologA
buenden
som

e debt
seduce
To
Kefosms of benalisahon

a
vanie y
Indussia Sectos sefosms in
e q u l o t e d

wese
indostsies stont
a
199. o
Befose sequised

of wayS
was
divensi
Tndostsial i cencingbusiness, s o u
elose
a Sene
Close

bUSinesS
indostSIES

oufput and man ble o

Secho
Ovaila
exclusively
psvate
Fo he
psoducts

S o m e b u s i n e s s e s

S
Suub
bje
ecctte
edd
Sma ll S cale tenS
wene

i n d u s t sial ContaolS
Centain a n d d i S t s i b u h o m

ihg aken onde industsia\

Follooinq neasunes

oetosms xeduction in industaia) licensina andit s

a
Thee was al mdostsies
abolished oS amost
manket fosce s wgs lowed
Psice
deliminahen by
n
man ihdustes
 Trdustsial
licensing uns
abolished
De- sesesUah am 6f
Poblc Se ctos
Industaia
Sectus De esesuahiom oF

RefosmS Small Scole industies

Remoual oF
psice Contsol

2Financial Secto Refosm Hnancial insitoHons

hat

inclodes Vani ous

ercheng e , osEig
ane Comm ban ks. StocK
icial
egulaed
ecchange , etc, and a hese O n e
SecFos asne
RBI VanioUS sefosmS onden h i s
Penmitted to take2
hinancia sectoss wese hoOt
heis o n w
decisions on manu ISSUeS on

Consu Hng RBL sectos banks and

- The establi shment of psivate
foseian imit usas ncseosed to OnoUnd
inuestment
SO
theis bxanches
Some banKS ene alioused to epand
in diFenert aneaS5 RIS aPpsoUal Psouded
coi thoOt
that h e FoIGled centoin Condhons

Financi al SectoOS
setosmS

Role of RBI selced

foom Segulato to
facilitatos
Establishment of
Psivate secto
bankS

fooeign inuestment eus bankS g0ot F ae alloued

limit in ban KS Fseedom to set up to inuestmen E
Saised to neu bsanch e S wtheut in Indian
appsoual of ReI fnonciol man ket
So'
 made s
T a c Refosms T incloded he se foamns

poblic e p e r c d i t u n
he aouenment i n t a x a i o m and
Jese Ueyhiah The
POlicies Befose 1991 Fax sates

tollouoing selosmSs uese done on individua incormes

Qedciom intasces euied

Cosposati om taxes
mose emploument
wege also educed to
oppostunihes
psormot

T a psocedunes Gere1s
wene Simplied and sat es
decseased Substan Hglly
6 h e ouenrnm ent passed the o sds and
Sesuice act 2016 to Simply and
Fainq unit h e indigec
oneSta t e m
in Tndig
This act aimed +o csegte
Sysem,and is q Compsehensive nslh
Saae, desinaho based Fas
System

Intsoduchon
CST in 20+
of Con inuoos
seduchon 'n
Ihcome a
fisca oliey
Refosm S
Tac psOcedu es Efosts made to
Simpli ked efosm indigect
aiesS

T inclodes he olloui n
odeign change serosmS
sefosms
usas devalu ed ainst the Frs eian
Indian Rupee
incsease h e i n f l o w
of Foseign erchange
C Uiency nOOse Com pe H i v e
aS eostS beco m e Chegpen and
Detonminai m of Rupee val ue w a s e t t o8 h e monket
detenrnine based on epost and im poxts

Foseian Cachange Kefoarns

Nou manke elesirines

Devaluahom of Rupee
ecchange sate
STsade and Ivest ment Refoms. o-
hese
and
wene done to incsease i b t e s a t o n a l Compeihueness
Hosejgn invectment intd the Indian econ omy
Foilowina
uani
sefosmS
taive
ene done
sestsichons on innposts and expoxtS
wene semoued Fos Consumph m and ogsico tuo19
goods
Tasi GFS onn post and impot Cese Seduced.
icensing
semoved
csitena
cept
tcS
fos
Imposting
haaandoUS
wene aoo d s , e s e
and enui son m e n t
honmnina industsies
ismantling of uanitaiue
sestsichonS

Tsade and Tnvestment

Reduchm of t a t sates
Palic Refasm S

Remoual of liCensin
Psocedunes

PosiRue mpacts beneht b

nlibenali aahon,imues tosS get huge
eostfolto inb a
inuesbng a Poshomof heis
divensiingCAd opHom
asseE
ofF Policu o f ibenali39hom he
t h the
m cse ased
Countsu apitql has
Fo
SigniRcantl he CounEs

X Negaiue mpacts
Foseign disec Thestment inbankina sectoS has
seduced the decline ouennmenFs Stakes in
bankS
Domim ance oF mulh nanongl Comeanies vasiovS
MNCs haue stosted dosinainq h e manke
and incseqsed Comee hhon Pos the Small
Scale Psoducens, due to which Smal sadens
aSne
soffening
sivatsation
Psivah sahon is the genenal psocess of involuing psivate
Of a stare
Sectos mhe Ouwnenship oopnathon
O
o uned
entesPSISES Sheddina of the ownenShiP entespasi S e S
Hanaaem ent oF the Ousned
Aovennment Sectos C%ovesnnmen t
and itss sansfen to he psivate
ompanies povate cornpani e S
o
One conve ted into

o wnenship o n d
thdsauwal of aouenn ment som
mana qement of poblic Sec tta3 Companies
outsigh Sale of poblic Secto8 Compani eS

Objectives of Poivahsaion
Rai Simg Fonds om Disinvestment
BsinginA heqithy CompeHhm within a n conom

Makin a
ay Fos oseign Disect Investment
ImpsoUIng h e Anancial condiim of Hhe
ouennm entt
Policies cdopted Fos sivatisahon
1) Contsaction of Publi Sec tos:
2) Abolish he
ownenShip of Couennment n
he managernent o Public entespsT ses
of poblic entenpsiSes
3 Sale f Shan e s

Steps taken in Psivati sation

ndian 20uennment

) Sale of shames of PsOs an

Shanes of PSus to pobic
Stanted Sellin9
hnan cial inshtuiom has
The gouennment
Disinuestmnent in PSUs in h o s e
2) PsoceSS
ofdisinvestment

Stanted the UOninginto loSS IF

had been
Ps Us hich
aovesnnment hgs Sold enfes poi Ses
means haE
CoSes
to he piuOFe
CB wosth Rs. 30,0O0
secto&
2Minimisanm of Foblic Sectox-seviouslu fUb) ic
as 8Tven the i m postanc with q Vie
Sectos gem oUal
iD indusFsiali gqhom and
help
pove but these PsUs could hot able to achieue
this obechve and Policu OF Con tsachon ot PSUs
was olloued ondes neuo
ecoomiC sefogmS
3 Cilob aisati on
psocess
of o t e g s a hng
lobal satiom sefens to h e
econom by
with he alobal and
CountsuS economy inteanaiong) t s a d e

emounq obstacles
inan al F\ows

Steps Taken Fo Colobalisahon

KeducHon in taaniffs Customn duhes and o
tasiFfs imposed on mpoatS an d expo&ts
ane

seduced 9sadualy JUst o m a k e Indian econ om

attsachve to alobal inues
2 tosS
Lonq tenmsade Policy-foscinq tsade
enfasced Fos ongen policy was
a) Libenal dungham
polic
b)Al contsols On
emoved Foseimn
Fsade have been
C Open Compeh h Cm has been en co n ged
3) Paontial Conuenkbiliky of Tndian Cnenc o
Pantial conuenhbli Can be deined
Convenht Indian C u nenc4 in he Cunsn¬n
ohenh coun sTES

Ut sown cM
OUFsoun Cn9 S Hhe psoce SS a s m obraini na
SEgulan sesuices Fsom SOtSide Sounces usvalla
fsom one nahonS thaat ene Fosmen\
psovided intennall S th me CounS
One of hne m posant esu1ts of
he alobaí sahomn PsOcess S

XThe wosid T s a d e Osgan3aham CwTO)

was estabished i n 1 9 9 5 as the SuccessoxS
henena Aqseement on Tasi FFs and sade
of he he
India as key mem ben
CATT wTO), n a s been
oslod Tsade Os gan3ahon
developing Fais 8oba
in he foreFsont of aS el\
seqolaionsS , andSaeauandS
Sules he n FenestS oE
aS advocaina
Countsi es. India has e p t t S NTO
deuelopi
Comm itm en tS to sade beyalis ahOm by
seuiq tasy FFS
PosRue Outcomes oF Cnlobalisation
Tnc D emp)oument - C l o bali
Sanon

Cnd o b
Opened dooss emplAs menF
Specia
PposunitheS ith he erpan
sion oF
SE2
ConomiC
he aise n e s Po pulanlu
employmenE
Rnown
Con be Seen

2 i den njob
o F Choices w i h the ncsEa se
oneaebal tsode and manlkehnq, CusFones
petuseen9ehne side Sange of Chot ces
oods and ps od
ucS
Negahve mpact OF Clobalisahom
Tt incseased Ccompe hion in h e Indian
betuoeen manket
e
Foseign and domeshc om
2 Cseairg neqoaliH es Omoq h e panie s
PlacesS and in o b s bndividuals,
9soRH has been
nKed tosis ing
Cand
e aliheS n ncome
wealh

Hssessment of the Refosms in

Indian
Econom
ahen sousm Rale achieved - h e aUenage 95usthn
sate oF oven 6 P cent duiina the lasE 10geons
1992-3 to 2oo-03) is an achievement of he setoSm
psocess
Casowth 6 CDf and Majos Sectoss Cin)
2002 26 2ou
Sectos 198 O 992
to
2o12 D13
200 2012 2013
Agaico)hne 35 33 23 3-2 S 2 - O-2

Tndustsy 36 S
:0
SesuiceS 6 82 +8
8
Total
S6 64 8 82S6 66 4
SouCe Economic Sunveyos Vanious
Anon ce, oTL eons,iniss o
 incteased

fbI and FIL)

Foseign ihvestment Cincludinq
o 1 6 + billG
TSom loomilliom in 199o-q
2012-13
exchang
one ofF the langest Foxeign
Tndia became
its Foselan erchanae
sesesues
sesegue hol denS as
incgeased Fsom billim in 1910-91 to 3 0 4
billim in 2o13-19

InflaHon eame onden Contsol and Indig

became the onges epose f auto pats
engineening aeods, IT Sof+usane, Fexhles etc
duninq thebefosm peniod

Negabve eFfects to
to
a
qddd
dsse
esss
s

fox Failing
Coiticiaed to
The NEP was
oelahn
of 6u onomy
basic psoblems casieolumal
mopogernentetc

indostsy,
employment
the ogsiculunee Sectos
n he ogsieulk hus
Inuestment odhus
od
Poblic e
3efu
tussm
m peni
pení
t
h he
e
decsea sed
duninq Reduchom i n impoE
ts 9souoh affec Led Smnall
decelesaing psoducts
col n a l
duties on gsC
Fcmmens
Indian
a
Sssse
ettS
s
psivaigaim, me
Tn psocesS o
ondenvalued
ohile seling eading
eading
weie
oF PSEs
Fo he AoUennment

to osS
 CONCLUSION
and bas
Tndia is a highly populat ed Count8q
oF India,
oonge econonmyAflen independence
hese in he econom
sluggish 9soLoth
not
Even afkn lot effostsS e conO m C6old

atain In 1980's effostss

highen CabP g3ooh sate
sesolte d
Dee2 aken modeSn13E econOm , bi ch
intd h e n e waS
echnology CA pital Im postS Thexeaften,

CaisiS in USSR Ond Poih cal

in stability India. These facteoSS seslted into
detesiosahom OF econommC CondiHiom fwnthen, and
India met OIhn
Pauent CoSiS
economic defosms o e e taken op oimpsoue
Indian CConomy OS shole and ene

PoPolanly knouon ibenali2ah on, Paivai 39hon

and
and
Calobaliz3ahan
CLPO) policy of the AGUenment
Coihcau Evauating policy u e ound Hhat
Hhesie wene Pesitive
pli cahons o F Polic
im of
1a on Tndian conomy in tenmS oF CDDP
tenacu, Stabili3ed inflahom, bettesiment healh
Cane
Facili impsovement fpsodu chi tu osf
uosK-tosce2 oi se in inCo me evel e t c
Thus, the new economiC
policyis taking ndia
dands ibenal manket economy T 1 has
hos e lieued
India much hen handship h a t che Faced in
1990-A
 BrBLTOGRAPHY
Books C)a ss l h
pmentTextbook,
Indian Economic Develo
NCERT, 201S ,chapten- 3
1 3 edi h m
Singh
2.) Indian economyR a n e s h

*websites
1) https / / pib aov: in
2 https:// ncenthelp cam
3 https || mobi osgin

Reposts conomic uvey

ot ndia
in1stou of inan ce (1994),
C0I
Eennal Sectos Neuo Delhi,
198Os and 990Ps,
and RetoSmS duing
2Ceosh and PoTiH cal eekly (200)
Economic

PlanDinq Epenance
commi Ssiam 2 0 0 hdian
3 Planning
A Statishicol Peoile, Ne Delhi hovennrnen of

India