|
India Basics |
|
India Buzz |
|
World Buzz |
|
21 pounds in 21 days |
Economic Crisis and Reforms
| India suffered a major economic crisis in 1991, largely due to the effects of oil price shocks (resulting from the 1990 Gulf War), the collapse of the Soviet Union (a major trading partner and source of foreign aid), and a sharp depletion of its foreign exchange reserves (caused largely by large and continuing government budget deficits).2 The economic crisis led the Indian government to cut the budget deficit and implement a number of economic reforms, including sharp cuts in tariff and non-tariff barriers, liberalization of foreign direct investment (FDI) rules, exchange rate and banking reforms, and a significant reduction in the government’s control over private sector investment (by removing licensing requirements). These reforms helped boost economic growth and led to a surge in FDI flows to India in the mid-1990s (annual FDI rose from about $100 million in 1990 to $2.4 billion by 1996; more than one-third came from U.S. investors). Reform efforts stagnated, however, under the weak coalition governments of the mid-1990s. The 1997/1998 Asian financial crisis and U.S.-imposed sanctions on India (as a result of its May 1998 nuclear tests) further dampened the economic growth.3 Following parliamentary elections in 1999, the government launched second-generation economic reforms, including major deregulation, privatization, and tariff-reducing measures. |
Back to Indian Economy
Indiasnapshot.com will shortly be introducing the following sections :
Indian History | Indian Geography | Culture of India | Indian History | Ancient India | Medieval India | Modern India | India General | Land and People of India | National Symbols of India | Indian Law and Justice | Defence | Indian Polity | Science | Indian Cuisine | Indian Culture & Heritage | People | Indian Festivals | Indian Dance | Hindi Music | Indian Cinema | Religion | Hinduism | Islam | Christianity | Sikhism | Jainism | Buddhism | Zorastrianism | Indian Art | Indian Literature | Painting | Craft | Vaastu | Siddha | Yoga | Indian Sports | Cricket | Hockey | Tennis | Golf | Kabbadi | Kho-Kho | Addresses of Sports Authorities | Education in India | Top Colleges | Addresses of colleges liberalisation geography reforms five year plans economy india's liberalization business cycle globalisation privatisation sustainable development
economic economic growth wto inflation backwardness claimant count macroeconomic monetary policy climate change sustainability india
economic times developing countries output gap gdp exports policy money supply business cycles phillips curve agricultural scenario liquidity trap
disinvestment interest rates executive resourcing industry of india