describe the impact of liberalisation after 1991 economic reforms in India
Answers
Answer:
Through reform, India overcame its worst economic crisis in the remarkably short period of two years.
Thanks to prudent macroeconomic stabilization policies including devaluation of rupee and other structural reforms, the BoP crisis was over by the end of March 1994 and foreign exchange reserves rose to USD 15.7 billion. Inflows of both FDI and FII into India have increased massively.
India also increasingly integrated its economy with the global economy. The ratio of total exports of goods and services to GDP in India approximately doubled from 7.3 percent in 1990 to 14 percent in 2000. This rise was less dramatic on the import side but was significant, from 9.9 percent in 1990 to 16.6 percent in 2000. Within 10 years, the ratio of total goods and services trade to GDP rose from 17.2 percent to 30.6 percent.
Reforms led to increased competition in the sectors like banking, leading to more customer choice and increased efficiency. It has also led to increased investment and growth of private players in these sectors.
There was a fall in inflation rates as reforms pushed up production of goods and services resulting in either prices falling or remaining constant. Competition also helped to keep inflation in check.
There was a significant Improvement in GDP, from __ in 1950, to ___ in 2000.
Explanation:
Answer:
Since the adoption of the New Economic Strategy in 1991, there has been a drastic change in the Indian economy. With the arrival of liberalisation, the government has regulated the private sector organisations to conduct business transactions with fewer restrictions.
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