Question
State the objective of economic reforms in India.

Answer

  • The changes brought about in economic policies since $1991$ in order to keep a change in the economic system of India.
  • One change was highly regulated by the state and other change was more market oriented.
  • As well as to reduce the extent of public sector in mixed economic system came to be known as economic reforms.
  • The objectives of these are as stated under:
  • Optimum and efficient allocation of country's resources can be possible.
  • Increase the domestic income, employment and export income of the country.
  • Increase competitiveness of the Indian economy.
  • Increasingly encourage the private and foreign investments in order to utilize India's abundant natural and human resources in the process of economic development in a productive manner.
  • Restrict expenditures of the state and keep the resources recovered from disinvestment in public enterprises towards increasing utility which enhance welfare of the people.
  • Ensure the steady economic growth and development of the Indian economy in the long run. In order to fulfill these objectives, systematic reforms in economic policy were initiated in $1991$ which had following three components:
  • Liberalization,
  • Privatization,
  • Globalization.

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