Impact of the Economic Reforms of 1991 on the Growth of Indian Economy and Industrial Sector of India

Abstract

Before 1991, India was a nation with political independence but no economic freedom. If the license and permit tied India down, they also stifled individual aspiration, ambition and achievement. That's why the touchstone of the economic reforms launched in 1991. India initiated the reforms in 1991, after financial crisis. In this process, India liberalized the industrial sector from license-permit raj which has accelerated the growth of Indian economy. Indeed economic reforms, aided by the rapid diffusion of technology, have enabled individuals, groups and companies to tap talent to not only create new businesses but set off a virtuous cycle of growth and entrepreneurship but on the other side agriculture sector adversely affected. Foreign Direct Investment, exports and other related variables of external sector shows a positive outcome growth of Indian economy.