Question

Explain briefly the meaning of economic reforms. What are the main economic reforms?

Answer 1

Economic reforms refer to the changes made in the economy with a view to deregulate it and to solve the prevalent economic problems of the country. In India, economic reforms were introduced in 1991, with the implementation of New economic policy. These reforms can be categorised as:

(i) Stabilisation Reforms: These reforms were short term measures which intended to correct disequilibrium in BoP and to check inflation.
(ii) Structural Reforms: These are long term measures which intend to bring efficiency into the economic system. These reforms can be categorised as liberalisation, privatisation and globalisation.