DISCUSS ECONOMIC TRANSITION

IN INDIA
By M.Vinjancy
1-BBA Basis of
Business and
Business
Environment
 MEANING

• A transition economy or transitional economy is an economy which is

changing from a centrally planned economy to a market
economy.
• Transition economies undergo a set of structural transformations intended
to develop market based institutions.
 HISTORY

• Since the mid – 1980s, India has slowly opened up its markets through
economic liberalization.
• After more fundamental reforms since 1991 and their renewal in the
2000s, India has progressed towards a Free market economy.
• India’s growth reached 7.5% which will double the average income in a
decade.
 ECONOMIC TRANSITION IN INDIA

• The Indian economy is in a transition phases largely owing to important

reforms undertaken in the last few years, a top Indian banker has said
exuding confidence that the country’s growth rate will be on the track.
• “Growth can come back”. Because of a lot of reforms, economy is in
transition.
 MAIN FEATURES

• Liberalization
• Macroeconomic
• Stabilization
• Privatization
• Legal and Institutional reforms
 REASONS

• The economic growth has been driven by the expansion

of the services that have been growing consistently
faster than other sector.
• A transition economy is one that is changing from
central planning to free markets.
 CHALLENGES
• Market changes and limited redistribution contributed to high income and
wealth inequality growth.
• High levels of economic inequality may lead to lower economic growth
and can have negative social and political impacts.
THANKYOU!