India’s development pattern during 1950-80 was characterised by strong centralised planning, government ownership of basic and key industries, excessive regulation and control of private enterprise, trade protectionism through tariff and non-tariff barriers and a cautious and selective approach towards foreign capital. It was quota, permit and license regime guided and controlled by a bureaucracy trained in colonial style. This so-called inward looking, import substitution strategy of economic development began to be widely questioned with the beginning of 1980s. Policy makers started realising the drawbacks of this strategy which inhibited competitiveness and efficiency and produced a much lower rate of growth than expected. Consequently, economic reforms were set in motion, though on a modest scale, when controls on industries were reduced by the 1985 industrial policy. The economic reforms programme got a big boost when the government announced a new industrial policy in the Indian Parliament on July 24, 1991. Since then, it is liberalisation, privatisation and globalisation all the way and the process is underway. In the new liberalised industrial and trade environment, the government is progressively assuming the role of a promoter, facilitator and catalytic agent instead of a regulator and controller of economic activities. This book presents a comprehensive, in-depth and balanced description and assessment of the economic reforms programme covering the period 1991-2001. It is designed to interest a cross-section of readership, viz. teachers and students of economics, commerce and business management. It will also serve the needs of business executives, present and prospective entrepreneurs and investors and all others interested in the current economic policies of the Government of India.
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