Thursday, March 06, 2008

India: 60 Years: 60 Words: [15] Economic Reforms

India: 60 Years: 60 Words: [15] Economic Reforms

[India has competed 60 years of independence and to mark this, I am presenting this series of Articles, about the words, that are meaning a lot for the progress of the country. If you feel I missed some thing [For listing of words see the first article “India: 60 Years: 60 Words”] do inform me at I will try to include that at the end of series]

When I thought of writing on this, I was forced to go down in the memory lane of my childhood memories, where I was asking father about reason of hiding the income by common Indians and getting the reason of high rate of income tax. My memories are supportive for the income tax rate as higher as 60% though people say at same times it was as high as 97%.

Though the chronology dares 1991 as the year of start for the economic reforms by the India but in fact the economic reforms were started with the independence of the country. If you consider all the land and social reforms implemented all the years, nationalization of banking system, stopping the compensation packages to various Kings and Royal family members of pre independence era and almost demolishing the licensing policies etc. Surely one will suggest that year 1991 can be taken as the year for the beginning of second phase of economic reforms in the country. A few years prior to this India were under going not only phase of political instability but also facing sever problems on the fronts of economy and was under the fear of collapsing. All these reforms were aimed at consisting of stabilisation-cum-structural adjustment measures, view to attain macroeconomic stability and higher rates of economic growth. At the political fronts country entered into new phase of coalition governments and might this be the reason for the speeding of the economic reforms as every political party was eager to reflect their concern about the nation and build an imagine of being caring towards the welfare of people in general.

In fact the infra structure of these reforms was discussed during the Prime ministerial term of Late Rajiv Gandhi and Present Prime Minister Dr. Manmohan Sing, Finance Minister shri P Chidambaram, Shri Montek Singh Ahuwalia and few others were the part of this core discussion. Though the credit of implementation of policies can be given to BJP led coalition government in the year 1991 but that doesn’t minimize the effort and vision of the dream team.

High going GDP and economic growth which was below 5% of annual rate, reach to as high as almost 7 % were the indication of success for the reforms in the first decade. In the year 2003-2004 the annual rate of economic growth was at 7.5% according to finance minister by the end of this fiscal year country will attain a rate of almost 9% and a double digit one in next 2-3 years.

The economic reforms opened the door of investment and in flow has resulted in strengthening the infra structural sector which subsequently started to reflect in the form of vigorous industrial growth of the country. Fortunately India is equipped with rich natural resources backed with immense man power with skills and talent, hence in the present era, after only a short period of reforms, country is among the huge economies of human world and stands third on fronts of GDP behind America and China.

Economic reforms are working for changing the image of Indians in the world human communities. Multi story buildings, Air conditioned and elegant looking offices, express high ways, flyovers and alternate roads within the city limits, availability of technical excellence, time bound work, ample inland travel facilities, comfortable hotel stay etc. are few images of new India.

Surely after the 60 years of independence India is marching ahead at the constant speed towards the desired goal of regaining the leadership of human world.

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