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Economic reforms before 1991

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Economic reforms before 1991
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Gaurav Seth 4 years, 10 months ago

Economic Reforms:

Economic reforms or structural adjustment is a long term multi dimensional package of various policies (Liberalisation, privatisation and globalisation) and programme for the speedy growth, efficiency in production and make a competitive environment. Economic reforms were adopted by Indian Govt. in 1991.

Factor’s responsible for Economic reforms.

1. Fall in foreign exchange reserve : as imports grew faster than exports
2. Adverse balance of payments resulted repayment crisis
3. Mounting fiscal deficit as govt. expenditure grew faster than revenue
4. Rise in prices, which has the negative impact on Investment.
5. Failure of public enterprises:- very low return on high Investment
6. Gulf crisis increases crude oil prices which negatively affected BOP.
7. High rate of deficit financing
8. Collapse of soviet block.

New Economic Policy:- It refers to economic reforms introduced since 1991 to improve the productivity and profitability of economy and to make it globally competitive.

Measures of New Economic policy

Stabilisation measures: These are short run measures introduced by Govt to control rise in price, adverse balance of payment and fall in foreign ex-change reserve.

Structural adjustment: These are long run policies, aimed at improving the efficiency of the economy and increasing its international competiveness by removing the rigidity in various segment of the Indian economy.

In the new economic policy 1991, Structural reforms can be seen with respect to.
1. Liberalisation.
2. Privatisation
3. Globalisation.

For more click on the given link:

<a href="https://mycbseguide.com/blog/economic-reform-since-1991-class-11-notes-economics/" ping="/url?sa=t&source=web&rct=j&url=https://mycbseguide.com/blog/economic-reform-since-1991-class-11-notes-economics/&ved=2ahUKEwiKv_ar-7XtAhWIzzgGHUcGAVYQFjABegQIAxAC" rel="noopener" target="_blank">Economic Reform Since 1991 class 12 Notes Economics</a>

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