Question

describethe main features of economic reforms introduced in 1991.

Answer 1

The process of economic reforms was started by the government of India in 1991 for taking the country out of economic difficulty and speeding up the development of the country. These include:

1.Liberalise the industrial policy of the government and to invite foreign investment by privatisation of industries and abolishing the license system as a part of that liberalisation.

2. To make the import-export policy of the country more liberal and so that the export of Indian goods may become more easy and the necessary raw materials and instruments for both industrial development and production of exportable commodities may be imported and also to facilitate free trade by reducing the import duty.

3. To establish market economy by withdrawing and restricting government interference on investment.

4. To reform the banking system and the tax structure of the country.

5. To take foreign debt and to create favourable conditions within the country for increasing the flow of foreign exchange and also to increase the volume of export.