India’s Economics reforms from 1991-2010: Introduction India’s economics reform that started after 1991 , when under the P. V Narshimaha rao government , Manmohan singh was the finance minister at that time , and he was also appointed as the “ finance advisor “. At that time india’s GDP grouth was 3% . after the IMF bail out the bankrupt state. The government P. V narshimha rao and the finance minister started the reform. Rajeev Gandhi started the light reform . by the end of 1990 india faces the serious economics crisis .
Balance of payment push bank into serious bankrupts. To compensate the IMF bailout gold was transfer to London as collateral, rupees was devalue, India was seriously facing economic crisis , it need to be change so, that the pressure was on narshimaha government to make policy that help to revive india’s condition . first thing that manmohan singh had done this that he lower the tariff, duties and the taxes . state monopoly was broken , and India is ready to embrace the globalization . nd that time it was seriously criticize by the some of the political party, they their own issues with the government but later it was accepted by all the party. India first time open for the FDI (foreign direct investment ), reform in capital market, deregulation in domestic busness. Many public monopolies were broken, FDI was allowed automatically in many sector . rao government main goal is that to reduce fisical deficit and privatization of the public sector , increasing investment in infrastructure . n Roa government manmohan singh is the well known economist and he was responsible the reform in India at that time. After this policy same year GDP( gross domestic product ) growth was 9%. In 1996 first time in india’s history BJP government came into existence under the leadership of Atal bihari vajpayee government. BJP is the second largest party in India. well, they made no change in the economics policy . growth was 7%, and BJP government announce investment the agriculture sector so, to achieve 8% growth. ut thes policy didn’t bring the elctorial growth for the NDA government . famous . once again the congress lead government came into existence . budget 2008-2009 main focus was to debt relief of for the farmer. Budget was presented by the finance minister P. chidambaram. but the main objective of this budget was to won the election which due in may 2009. And the opposition leader L. Kadwani said this budget as “political hoax”. Once again .