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    Economic Reforms Since 90'S

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    Rayan Brosta
    The document discusses India's economic reforms since the 1990s. It outlines the major causes for the reforms, including a rising fiscal deficit and issues with the balance of payments. It details the role of Manmohan Singh and the major reforms implemented, such as fiscal reforms, tax reforms, banking reforms, and industrial reforms. The reforms led to significant consequences, including higher growth rates, increased exports and imports, and improved balance of payments. Various sectors like agriculture, industry, and services were affected by the reforms.

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    Economic Reforms Since 90'S

    Uploaded by

    Rayan Brosta
    72 views23 pages
    The document discusses India's economic reforms since the 1990s. It outlines the major causes for the reforms, including a rising fiscal deficit and issues with the balance of payments. It details the role of Manmohan Singh and the major reforms implemented, such as fiscal reforms, tax reforms, banking reforms, and industrial reforms. The reforms led to significant consequences, including higher growth rates, increased exports and imports, and improved balance of payments. Various sectors like agriculture, industry, and services were affected by the reforms.

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    The document discusses India's economic reforms since the 1990s. It outlines the major causes for the reforms, including a rising fiscal deficit and issues with the balance of payments. It details the role of Manmohan Singh and the major reforms implemented, such as fiscal reforms, tax reforms, banking reforms, and industrial reforms. The reforms led to significant consequences, including higher growth rates, increased exports and imports, and improved balance of payments. Various sectors like agriculture, industry, and services were affected by the reforms.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    72 views23 pages

    Economic Reforms Since 90'S

    Uploaded by

    Rayan Brosta
    The document discusses India's economic reforms since the 1990s. It outlines the major causes for the reforms, including a rising fiscal deficit and issues with the balance of payments. It details the role of Manmohan Singh and the major reforms implemented, such as fiscal reforms, tax reforms, banking reforms, and industrial reforms. The reforms led to significant consequences, including higher growth rates, increased exports and imports, and improved balance of payments. Various sectors like agriculture, industry, and services were affected by the reforms.

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    You are on page 1of 23

    ECONOMIC

    REFORMS
    SINCE 90’S

    By,
    Parth Purohit-Durva Shastri
    Agenda
     Introduction
     Major Causes
     Role Of Manmohan Singh
     Major economic reforms
     Significant Consequences
     Various Sectors Affected
     Conclusion
    Introduction
     The term ‘economic reforms’ refers to
    policy reforms undertaken by the central
    govt. since 1990 to attain certain
    significant achievements through the
    main approaches which are as follows:
     Stabilization
     Restructuring
     Globalization


    Major Causes
     Increase in fiscal deficit
     Deficit in Balance of Payment
     External Borrowings
     Mounting Inflation Rate
     Failure of the public sector
     Industrial licensing policies
     Gulf Crisis
    Role Of Manmohan Singh

     Wide ranging tax reforms


     Containment of defence equipment
     Cuts in fertilizers
     Inward oriented trade policy
     Exchange rate devalued
    Major Economic Reforms
     Fiscal Reforms:
    Reducing the Fiscal Deficit
    Banking Sector
     Import Licensing
     Export Orientation
     Tax Reforms
    Direct Tax
    Indirect Tax
    Resource Generation through Divestment
     Structural Economic Reforms
    Reorientation of Planning

    Banking Reforms
     Changing in rate SLR and CRR
     Entry of Public and Private Sector in
    capital market
     Operational Flexibility
     Relaxation in Licensing of Private Bank
     Improve standard of supervision , audit
    and technology
     Interest rate deregulation and financial
    repression.


    Industrial Reform
     Industrial licensing
     Foreign Technology
     MRTP limit
     Technological Development
     Development of small scale industries
     Right of Labor
     Foreign Investment
     Self reliance
    The Next Generation
    Reforms
     Political Reforms for Good Governance
     Re-engineering the Role of the government
     Administrative and Legal Reforms
     Strategic Management of the Economy with a
    focus on knowledgebase
     Fiscal Prudence
     Agricultural Sector Reforms
     Industrial Restructuring
     Labour Sector Reforms
     Foreign Trade and Outward Investment Policies
     Financial Sector Reforms
    Significant Consequences
     Higher rate of growth
     Rapid growth of secondary and tertiary Sectors
     Increase in Export and Imports
     Improved Balance of Payments
     Rise in value of Rupee
     Less reliance on foreign borrowings
     Overall development of Indian economy
    Various Sectors
    Affected
    Growth Rate
    Sector Wise Growth Rate
    Indicators Of External
    Sector
    Year Growth of Exports- Growth of Imports- Exports/ imports
    BOP(%) BOP(%) (%)

    90-91 9 14.4 66.2

    95-96 20.3 21.6 74

    00-01 21.1 4.6 78.5

    2005-2006 23.4 32 67
    Balance Of Payment
    WPI Inflation Rate
    Foreign Exchange Reserves

    Year Gold Foreign Currancy

    80 - 81 370 5850
    90 - 91 3496 2236
    2000 - 2001 2725 39554
    Macro economic Indicators
    Indicators 1989-90 1994-95 1999-00 2000-01 2001-02 2002-03
    A. Growth of GDP (%) 5.6 6.3 6.1 4.4 5.6 4.4

    B. GDP Growth by Sectors (%):

    i. Agriculture & Allied 2.7 4.9 0.3 -0.4 5.7 -3.1

    ii. Industry, of Which Manufacturing 6.7 8.3 4 7.3 3.4 6.1

    iii. Services 6.7 6 10.1 5.6 6.8 7.1


    C. Inflation Rate (WPI Index (%)) 9.1 10.4 4.8 2.5 5.2 3.2

    D. Current Account Balance as % of -3.1 -1.1 -0.5 -0.5 na


    GDP
    E. Foreign Exchange Reserves (US $ 3.37 19.65 35.06 39.55 51.05 69.89
    Bn.)
    F. Exchange Rates (Rs/US $) 16.6 31.4 43.33 45.51 47.69 48.44

    G. Rate of Growth of :
    i. Exports (%) 18.9 18.4 10.8 21 -1.6 20.4
    ii. Imports (%) 8.8 22.9 17.2 1.7 1.7 14.5
    iii. Exports as % of GDP 6.4 9.6 9.1 10.4 9.9

    iv. Imports as % of GDP 9.3 10.5 12.4 11.8 11.6 na

    H. Fiscal Deficit as % of GDP 7.9 4.7 5.4 5.6 5.9 5.5

    I. Revenue Deficit as % of GDP 2.6 3.1 3.5 4.1 4.2 3.9

    J. Saving Ratio as % GDP 22.3 24.9 24.1 23.4 24 na

    K. Investment as % of GDP 24.9 25.4 25.2 24 23.7 na


    C.R.R
    Bank Rate
    Conclusion
    ♦ Reforms have put the Indian economy on a
    higher growth path.
    ♦ Equally important to resolve the immediate
    liquidity problem.
    ♦ To restore the economy on the path of rapid
    and healthy economic growth.
    ♦

    Bibliography
     Ministry Of finance
     Vikalpa- The Journal for Decision Makers
     Books Referred;
     Indian economy reforms Since 1990
     Indian economy since 1945
     Indian Economy
     Indian Economic crises
     Role of Manmohan singh in Economic reforms
     www.Wikipidia.com
     www.Google.com
     www.planningcommision.gov.in
     www.rbi.org.in
     www.slideshare.com
     www.sribd.com

    Thank you

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