Economic Growth Of 1991

Great Essays
In 1991 India adopted a pro market strategy that liberalised its internal regulatory framework, reduced tariffs, adopted appropriate exchange rate policies, and allowed foreign investors to play a significant role in the economy (kohli, 2006). Atul Kohli argues that the growth witnessed in 1990s is due to the reforms and policies taken in the 1980s and cannot be solely attributed to the 1991 reforms. Thus the neo liberal cum pro market interpretation of the growth in 1990s clearly ignores the empirical evidence provided by the growth witnessed in 1980s. Through Atul Kohli article it is evident that economic growth in India has boosted before the1991liberalisation policy; it is also evident from his writing that industrial production in India …show more content…
Thus leading to crisis of 1991, to overcome of this deficit the government approach IMF for help but the IMF had set rules according to which the India had to plan its reform and policies mainly it focuses on opening of the market (kohli, 2006). Kohli (2006) argued the need for the reform was also because of other factors like disintegration with Soviet Union leading to political and military ally, thus pressuring to develop relation with US, which implies opening of market for American goods and capital. “Another important global change that developed over the 1980s was the growing availability of investible resources - in foreign exchange, to boot - in the form of portfolio investments” (kohli, 2006). Also the decision makers of India were aware of emergence of WTO which means strong implication to cut down tariffs and import quotas. At this stage as we discussed that the government was showing the keen interest in public spending but due the global market situation is changing the Indian economy is seemed to obliged to incorporate modest industrialization and enrich the political and economical terms with other countries. The question can be asked again whose interest are getting fulfilled adding to it, is central form of policy making is relevant. Without asking …show more content…
This became the drawback for the UPA government and main agenda of campaign for NDA. As a result NDA government came into power after May 2014 general election. “India is a multi-party democracy but the last elections were sought to be projected by the BJP as if these were akin to American-style
Presidential elections in a bipolar polity, one in which two personalities were often perceived to be bigger than the parties they represent. It was Narendra Modi versus Rahul Gandhi, and the former won hands down” (Thakurta, 2014). Victory of Modi is been seen as boon for many corporate sector and stock market (Thakurta, 2014). “Economic policy reflected in the new government’s maiden budget focuses on favouring foreign investments, divestment of its shares held in public sector to raise resources, the scrapping of the Planning Commission, controlling of food prices and creating new jobs” (Thakurta,

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