which are the economic reforms india
Answers
Answer:
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.
The reforms intended at bringing in larger cooperation of the private sector in the growth method of the Indian economy. Policy changes were proposed with regard to technology up-gradation, industrial licensing, removal of restrictions on the private sector, foreign investments and foreign trade. The essential features of the economic reforms are – Liberalisation, Privatisation and Globalisation, commonly known as LPG.
Answer:
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.
The reforms intended at bringing in larger cooperation of the private sector in the growth method of the Indian economy. Policy changes were proposed with regard to technology up-gradation, industrial licensing, removal of restrictions on the private sector, foreign investments and foreign trade. The essential features of the economic reforms are – Liberalisation, Privatisation and Globalisation, commonly known as LPG.
Quick link: Economic challenges in India
Economic Reforms
Economic reforms were introduced in India because of the following reasons:
Poor performance of the public sector
Imports grew at a very high rate without matching the growth of exports.
Government could not restrict imports even after imposing heavy tariffs and fixing quotas.
On the other hand, Exports was very less due to the low quality and high prices of our goods as compared to foreign goods.
Fall in foreign exchange reserves
Foreign exchange (foreign currencies) reserves, which government generally maintains to import petrol and other important items, dropped to levels that were not sufficient for even a fortnight.
The government was not able to repay its borrowings from abroad.
Huge debts on government
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