Question

Need of economic reforms.

Answer 1

Economic reforms must strengthen the government—not reduce its role in public policy.

However, it will be a grave mistake to misconstrue the need for economic reforms by calling for a lesser role for the government or public policy in widening opportunities and creating a positive environment for equitable development.

$hope \: helps$

Answer 2

$\mathbb{ANSWER}$

______________________________________

The need of economic reform was felt because of the following reasons :-

______________________________________

1.Balance of Payment Deficit :- India's payment of deficit has been constantly rising particularly.

______________________________________

2.Faliure of public sector :- During last 15 years, PSU's performed satisfactory but most of them started incurring losses.

______________________________________

3.Increase in Prices :- There was a persistent rise in prices during the period 1956-1991.

______________________________________

4.Increase in limit of foreign exchange :- The limit of foreign investment in banks was raised to 15% for merchant bankers, mutual funds and pension funds.

______________________________________