Economic Reforms in India: Issues and Challenges

Economic reforms in India 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. The Indian economy has responded well to the economic reforms initiated since 1991. The Approach Paper on the Eleventh Five Year Plan (2007-12) released by the Government in November 2006 has indicated 7.2 per cent growth rate during the Tenth Five Year Plan (2002-07). Though this is below the target of 8 per cent, it is the highest growth rate achieved in any Plan. The growth rate for the Eleventh Plan has been fixed at 9 per cent. In short, the Indian economy is in a much stronger position than it was a few years ago. The economy, therefore, has shown that it is capable of achieving high growth rates in response to the implementation of appropriate economic reform policies. The process of economic reforms in India seems irreversible. There is enough evidence that Government is withdrawing, though gradually, as a controller and licenser of private activity and allowing competition and market forces to guide investment decisions. The debate on the dimensions, achievements and failures of economic reforms is raging in the country. The present book is designed to contribute to the existing body of literature available on economic reforms. It consists of 21 papers authored by scholars in the area of economic policy of India. This work, which is fairly replete with inspiring and enlightening matter, will commenced itself to all categories of readers, particularly academicians, researchers and students of economics, commerce and business management.