Ine *earons foy forms IN Enda? Clon ome ___Etonomic 7 nest “mii _Inclia_peger Ane SPuctural adjustments trad were ST one ” e | initiated in _139/_witr tre aim ag eI __liber sing the economy ave 4 geclerate Babies vete of economic growth. - - TT caverment lin 1981, jntrooleced Aha _ —] economic reforms jn order +o restore 7 | intemal ond extemal confidence jo re | finely economy _ ane The Reforms aimed cot bringing * Gre fer porte pation | oy the privé He _see [the growth procest ofthe Znal polity ehanget ger economy: industrial Us woth ye Spec + to ation, removal oF peelnology Up qrad \ “ mesteictims on =the __privalt _rectey investments and foreign P= de. They Rei eronomic vo ucing the ———~ deitit “and overcome a pe ane of mend exisit - ener!Date / it poe = pia? The impoviant Leatives af Economic MPorms were Liberafisatim Privah'se#y, amd Globalisation popular)yifnowv df CPG, Reasens fox Economie re foros t= i) Rise im Prices Price vise continuosly i'n Lilla. The jnflation vate sneveased from 6th te 16-F% Due to inflation Couvtry's Econemi'c position become | _cOorse, Main reason fer inplectio war vapid increase i'n money supply + I+ eoas _olue to ole Ficit Finan cing pefrert financing means borrowing © G from Reserve Bank of Ivdi'a. b. Goverment te meet its de Fye't- R&T provices n's — Joan by privting new Camency nofes: Cos + of production increases slue to inflation .inis affects demand for prrocduets.ee il VA | —— | | in) Rise Je fiscal Derycit i —_Due +o jncrease j'n_non-cleel, expenditure "fiscal derieit ne tye Gah pad been tneveartng | Fi'scel detrei means —cliffennce between pojal expenditure and total receipts minus loans. To__cover tne prrcal derrcit, the Govt bas to ratse foang and + pay srferest on t= Due to vise in frecel deficit there wous tise jn public debt and) interes}. Tn _I991 interest fyability become 364% op total qovt: “expendi tuye. The Govt f Ss caught in debt frep. $e Govt. has te $ ve seyt fo econamic rt forms: iti) Twevease_in Adverse palane of [_| fay mends i The differenw betueen total ports and iy pots ofa country jae bE fi ft | ee alled bofance of payments. whem dota) imparts ostained fem fwo Source _ b) Remittances by wero a) By Export? as ? short tohen foreign exchange fell: pphenvise otal impovs _+ problems oF + oF pagenend amise. for payment exceed fetal expus ts | Adlver se bal anea 4 heey iM ceudives ~ Ore giver) fox : export gryamo tion yet the desired ra resutts cannot be aehtervedl. py fy “Ltn te thes faret that our export — ~d gueds gould not tompete in price ond gece: - iY) drag war | Zn 7550- 9) was M Sray brok I and- fis led to vise ju petrol prrites. The “plow of forergn cumency from Gulf Countries stepped amd tic —faxtner aggravarsel the problem. |v) pismal per formanee of pire Cpublic Sector Undertakings ) | - ps0's are ercter prise” wholly I owned by Govt: how -jnvesied crore | oF Re fn these enbey prises. These : Ore no per Ferm ing esol) dae to politvee! | Inter Fesen ce ana become big Io bs dy for guvt , vi) fall tn forty _ Exchange Reserveli “Indian foreign exchange — reper Fell to low ebb iwi f9go-dstata Gait | cond 1b tas Insupfietend fo pay far an [_im peut bill for 2 seeker. fn 1944-84 ign _€x change reserves _Gatre i ps. 81S) Crores odin 1986-96, it is | declined to Ro. 6252 cyeres. then o | Govt hed Jo sell _guvt to meet the 7 jmpert Lia bitity 5 Seo Grovt- hod 4o qk about potity of |jbervalisation. \Date __ /__ /____ Qs) Explain the eed ef Banking (eforms in fnoa Anse tne Banking sector is One| of the centers for all the’ economle achvwitte in tre country. A > small change 11 Lrts regulation s can affect: the eutlre Leonome » The banking sector helps the country boost 1s e@ covam, by capitd accumulafio, mo bi'lrzing | and e_allo cating gne_capiia) for altemetin ures: One af tye objectives og the br ie fee eepictency eparaale the health aud ee soundness of the Indian banks. Thus, various pbonksng sector xforms have been ima) in Inelfa Jo promot economist Liberalization ond Globalization These reforms assure thet fneli’an _ banks an meet setemation aly | ateepted sranclards of per formance —\ Lee oe lf Need oF gankin Refosms in Tnolig i- formey BT Grover = Raghuram | gaj on amd former Deputy Gpvemer- vival Asharya in heir : recount ae \ishel paper have suggested ware 4p tackle problems of The Indians Banieing sector. Here Are 6m OF the ain concerns the 4 brought Cpt S Wandiing Bad Loansin {| Bank gneuld olevelop an online platform for Aistressed Joon sales to _groviele__ real-time fy angporemey. Av our-op - court ves Tuctuyin'g premeso es neecls 4o be alesiqne for hosting neqerations between banks ee a ovcelttors of stressed firms. privade Srms Shod be encourayed te ag gecqete and recover foane in aes cohere goverment Juterpeven te janit necessary | 2) Boosting the Pe formant ce OF Public sector Banks CPSBs) i i | Public Se etoy Banks Show o- Tbe operated inclependent! | execoraline | PS rete}Date __/, Sas Ao WhelY objectives so that nn aed orexmenf can keep an adequak distance from he mana gement | OF Peps + Payments puch as rim] ni casts Foy maintaining pbrancher fn # YEmete qrees shoud boy provioled by the goverment: 14 worl] tn touvege | beth private ancl public sector banke to 00 myplet for cleliverin: on Mandates. Incentives structyyes || fo management neeol Co be STrengtheneol do brin foleaa > m hed? of —art | - a i) _Altering ownership ore chur, oF _ Public sector Ranks i- HL ___cronership structure! of select | pBSs com be altenecl j»whern ne goverment bes _bryeug bet alow eta ket foe ae be low SOT. Tis wlll crete a safe | _olistance between the gowrment _ and bak Ip ets alse _im proving WVvemance. Re vivetizetio can be andlor 4a ken fo brit my” _privede 2 investovs che ha oth Financiel — and- +echno! gical expe xhise. | 2a She efure ie Better seq pital SPructunys need jo be created for the long - eect Financing of in frashuctun and inoles pial projects Borrowers ghould be allowed: eash- flow bared fending alow 4 with asset-based fending. ct Transparency qv ound auds and group +t 4 exposures Should be jmplemented | both at the bank level and system level to diswourvage asset — Ste ipping and cash-flow siphoning, 5) Strengthening Risk ~ptanagement : Ther Should be a complete extexnal benchmarking op loans te all the market ~-base in_avdev fo create pass- Through or mone try policy. u This woill pyomote atural nferats sree sensitivity on bank balance - shea 6) Creating Grater variety in Banking Structures on- tap [vocensing con be banks with an Qs availed for T Popena| =]oC a Gani avnua! invitation for applications Thit allow ewhy | fpr betrer players and crake mere vibrant banking . Ths will help hel q hi por forwming omall finance banks to be come universal banks. Likews se poorly pert Fore mi universal banikes con be clemoted jo a ower status.