Economic Reforms Economic reforms may be a future multi-dimensional package of varied policies including Liberalisation, globalization and privatization) and programme for the fast growth, efficiency in production and to form a competitive environment. In 1991, Economic reforms were adopted by the Indian Govt.
Factor’s liable for Economic reforms are as follows: 1. Adverse balance of payments resulted in repayment crisis 2. Fall in exchange reserve: as imports grew faster than exports 3. The rise in prices, which has a negative impact on Investment. 4. Mounting fiscal deficit as govt. expenditure grew faster than revenue 5. The Gulf crisis increases petroleum prices which negatively affected BOP. 6. The collapse of the soviet block. 7. High rate of deficit financing
New Economic Policy: – It refers to economic reforms introduced in 1991 to enhance the productivity and profitability of the economy and to form the economy globally competitive. Measures of the latest policy
Stabilization measures: These short-run measures are introduced by Govt. to regulate the rise in price, fall in foreign ex-change reserve, and adverse balance of payment.
Structural adjustment: These end-of-the-day policies are aimed toward improving the efficiency of the economy and increasing the international competiveness of the economy by removing the rigidity in various segments of the Indian economy.
In the new policy 1991, Structural reforms are often seen with reference to. 1. Liberalization 2. Privatization 3. Globalization
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