Abstract
Economic reforms refers to any kind of
policies that seek to improve the condition of the economy. The impact of
economic reforms of 1991 in Indian economy are as follows: India was able to
overcome the economic crisis of 1991, in a period of two years due to the
economic reforms. The Indian economic reforms of the early 1990s have
stimulated much research and a host of academic papers. It is common to
attribute India’s recently accelerated growth to the reforms. An aspect that
has remained relatively unclear is which policy changes within the reforms have
led to which consequences for employment, incomes and poverty. There is also
debate about which further policy changes are required to sustain the increased
growth and to strengthen the diffusion of progress to the lower-income segments
of the population. Most studies have analysed the reform impact on macro
aggregates, which leaves it unclear how different policies have worked. In
order to examine this aspect it is useful to investigate at the firm level how
different industries.
Key Words: Indian Economic, resource, Employment, Poverty, Agriculture, NABARD.
Introduction
1. Government adopted the technique of progressive
economic planning
2. Indian govt. With Prime Minister forming the
planning commission on mark 1950 of
adopted 5 years plan
3. Indian govt. Decided to adopt mixed economy.
Economic Planning:- it refers to the
utilization of country resources in different development activities in
accordance with the national priorities.
Goods of Planning:- 1 April 1951 was
launch (1st 5 year plan launch)
{12th Plan 2012-2017 was completed}.
We have two type objective or goals.
1. Long Term- about for 20 years.
2. Short/Current plan .
Indian Economy (1950-1990)
Main Objective of 5 years plan:-
1. Economic Growth:- increase in
production capacity.
The first and foremost objective of 5 years plan is
economic growth.
Modernization:-
adopting new technology and put necessary changes essential meaningless tradition.
Full Employment:-
The person who willing and able to work at the existing wage rate get work
Equity:- Equal
distribution of income and wealth.
Self Reliance/Self Dependency.
Importance of Agriculture:-
1. Contribution in GDP.
2. Supply of goods.
3. Sources of employment (47% in 2013 in agriculture).
4. Supply of Raw Materials.
5. Market for industrial sector.
6. Sources of revenue (tax revenue).
7. Increase the export.
Problems with Indian
Agriculture
1. Lack of irrigation
facility.
2. Small and Scattered
holding.
3. Deficit of
institution finance.
4. Conventional
outlook.
5. Lack of
organization market system.
National Agriculture
for Rural Development
Reforms in Indian
Agriculture
(a) Land reform
(Institutional Reforms).
i. Abolition of
Intermediaries (Removal of zamindari system).
ii. Ceiling on land
holding:- It refers to fixing the amount of land that one can hold.
iii. Consolidation of
holding.
iv. Operating farming
(Joint farming).
General Reforms
i. Expansion of
irrigation facilities.
ii. Institutional credit
NABARD has been set up as an apex bank.
iii. Regulated market
and co-operative marketing society.
a. A regulated market
is a system where the govt. Control the forces of demand and supply.
b. Co-operative
marketing societies are established to increase the bargaining power of
farmers.
iv. MSP (Minimum
Support Price)
Green Revolution:- It refers to sudden
and spectacular increase in agriculture productivity due to use of high
yielding variety of seeds. It includes:-
i. Use of HYVs.
ii. Use of chemical
fertilizers.
iii. Use of
pesticides.
iv. Scientific crop
rotation.
v.
Modernization means of cultivation.
Achievements of Green
Revolution:-
i. Increase in
production.
ii. Increase in
marketable surplus:- it refers to the portion of agriculture production which
is sold in market by farmers after self consumption.
iii. National income
(increase).
iv. Benefits to low
income groups.
v.
Buffer stock of food grains.
Failure of Green
Revolution:-
i. Limited crops only.
ii. Uneven benefits.
iii. Soil degradation.
iv. Uneven spreads.
Industrial
Reforms:-
The growth of Industrial sector is necessary for the economic monetary
prosperity of the country.
It provides:-
i. More stable forms
of employment.
ii. Promote
modernization.
iii. Increase in
National Income.
iv. Boost growth
potential.
v. Increase Export.
vi. Modernize Agriculture.
Limitation of Private
Sector
Public Sector need
Industrial Development.
i. Lack of capital.
ii. Lack of Incentive.
iii. Social Justice.
iv.
Development of Infrastructure.
Industrial Policy
Revolution
According to the
Industrial Policy 1916, government increase the sale of public sector in the
industrial development of the economy. The main objective is to prevent the
concentration of wealth from few lands.
Features of IPR
1. Their classification
of industries.
Schedule (a) 17
industries.
Schedule (b) 12
industries.
Schedule (c) Remaining
Industries.
2. Introduction of
Industrial Licensing:-
it refers to a written permission of the govt. For opening or expanding of
industrial unit.
3. Industrial Concession:- Incentives like
tax, rebate subsidiaries, rate of power supply were offered to private
entrepreneur for establishing industries in backward and rural areas.
Small Scale Industry:- It can be defined
as the one whose investment does not exceed Rupees 5 Lakh.
Rules of Small Scale
Industry
i. Labour Intensive.
ii. Promotes balance
regional growth.
iii. Promotes equity.
iv.
Source of Raw material.
Foreign Trade
Import Substitution:- It refers to a
policy of replacement of imports by domestic production.
1. Tariff
2. Quota
Conclusion
Economic Performance
since 1991
Economic reforms are
the long term dynamic combination of policies and programs for the steady
growth, efficiency in production and making a competitive market.
Q) Why did the government
announced new economic policy in 1991?
Ans- Factors responsible
for economic reforms:-
1. Fall in foreign
exchange reserve.
2. Failure of public
sector.
3. High fiscal deficit:-
fiscal deficit refers to the borrowings be the government on account of excess
of expenditure over revenue.
4. Deficit in balance of
payment.
5. Increase in rate of
inflation.
References
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impact of economic reforms on indian manufacturers: evidence From a
small sample survey
