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Articles: Business | Economic reforms in India
- Mr. T.R.Sridhar Prasad. Uppalapati.
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The major achiements of economic reforms are1. Improvement in the balance of payments situation,(balance of payments is the difference between exports and imports) 2.Increase in the incomes of the people, 3.Reduction of poverty ratio to around 25% from about 40% in 1991, 4.Increase in the employment levels both in urban and rural india, 5.Improvements in the infrastucture such as education, health, transportation, communication, 6. Increase in the power production due to involvement of private people in the power production etc. 7.Increase in the availability of banking/credit facilities due to the participation of private and foreign banking entrepreneurs. 8.Increase in the per capita income and GDP growth rates, at present the GDP growth rate is 8.5% GDP is defined as the total money value of goods and services produced in an economy in an year .9. There is also an improvemant in the Forex (foreign exchange resources) resources.
There were criticisms too against the new economic policy-91. According to the critics the economic reforms divided the Indian society into haves and have nots and digitslised and non- digitalised, rich and the poor etc, but by taking effective steps to improve the lot of the rural masses (India lives in villages, and at present nearly 65% of the Indian population lives in villages) the gap can be filled. These steps incude, the increase in the availability of cheap credit, improving the marketing facilities, Irrigation faacilities, Uninturrupted Power supply for agriculture, employment facilities during the lean agricultural season by encouraging the setting up of rural industries by providing some incentives along with the existing concessions, improving the rural infrastructural facilities like roads etc.
The economic reforms also contributed to the increase in savings rate and thus the investment growth rate. The supply of goods and services has been increasing and the consumer has to choose from the various choices available in the market.
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