Starting in June 1991, the Indian government introduced a number of liberalising measures, including significant tariff reduction, abolition of all quantitative restrictions on non-consumer goods, unification of the exchange rates, and adoption of a liberal set of rules for FDI, and introduction of current account convertibility. While the industrial reforms seek to bring about a greater competitive domestic environment, the trade reforms seek to improve international competitiveness. The private sector is allowed in many industries that were earlier exclusively reserved for the public sector. In these areas, the public sector will have to compete with the private sector, even though the public sector may continue to play a dominant role. These reforms are not meant to diminish the role of the state, but to redefine it, expanding it in some areas and reducing it in some others Basically its aim was to have a better mix of ‘market' and ‘State’. Against this background, this paper reviews India's development strategies including recent economic reforms and then discusses economic performance and its outlooks.
Klein, L. R., & Palanivel, T. (2001). Economic reforms and growth prospects in India (CAPS Working Paper Series No.116). Retrieved from Lingnan University website: http://commons.ln.edu.hk/capswp/72