Economic Reforms of 1991
The economic liberalisation in India is the progressing economic liberalisation happening in the country which was started in 1991. It started with the liberalisation of the country’s economic policies aimed at making the economy more oriented towards the market and also includes extending the role of private players and foreign investment. Specifically, the changes comprise of a drop in import tariffs, market deregulation, lowering of taxes and increased foreign investment.
Proponents of liberalisation have credited this process as the reason behind the high economic growth showcased by India in the 1990s and the 2000s. However, the challengers of this process have accused it of causing higher poverty, economic degradation and inequality. The general direction in which liberalisation of the country’s policies have been going has remained indifferent to the ruling party at the centre. But, on tough calls like liberalising labour laws and lowering agricultural subsidies, no party has committed to any resolution. Today the country is witness to a lively debate on the reasons for the sustainability of the economic reforms.