Question

briefly explain the three main causes of the introduction of economic reform measures in India​

Answer 1

Answer:  The following are the reasons for economic reforms in india:

                     (i) Rise in Prices

                     (ii) Rise in Fiscal Deficit

                     (iii) Increase in Adverse Balance of Payments

                     (iv) Dismal Performance of PSU's (Public Sector Undertakings)

                     (v) Fall in Foreign Exchange Reserves

Answer 2

Meaning of Economic Reforms

Economic Reforms refer to the fundamental changes that were launched in 1991 with the plan of liberalising the economy and for quickening its rate of economic growth. The Narasimha Rao Government, in 1991, started the economic reforms in order to rebuild internal and external faith in the Indian economy.

Why were Economic reforms introduced in India?

Economic reforms were introduced in India because of the following reasons:

Poor performance of the public sector

1) Public sector was given a role important in development policies during 1951-1990.

1) Public sector was given a role important in development policies during 1951-1990.2) However the performance of the majority of public enterprises was disappointing.

1) Public sector was given a role important in development policies during 1951-1990.2) However the performance of the majority of public enterprises was disappointing.3) They were incurring huge losses because of inefficient management.