India: From License and Inspection Raj to the Triumph of Reforms
The IUP Journal of Managerial Economics, Vol. IX, No. 4, pp. 7-14, November 2011
Posted: 23 Jul 2012
Date Written: July 23, 2012
India followed social democratic policies from 1947 to 1991. The economy was characterized by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the economy toward a market-based system. A revival of economic reforms and better economic policy in 2000s accelerated India’s economic growth rate. In recent years, Indian cities have continued to liberalize business regulations. By 2008, India had established itself as the world’s second fastest growing major economy. However, the year 2009 saw a significant slowdown in India’s official GDP growth rate to 6.1% as well as the return of a large projected fiscal deficit of 6.8% of GDP, which would be among the highest in the world. The present study is an attempt to understand the nature of transition from a socialist to a liberalized economy that has helped India emerge from a bottomless pit to become a potential economic superpower.
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