Though economic liberalisation in India can be traced back to the late 1970s, actual economic reforms began in right earnest only in July 1991. Progress has also been made in many areas that were previously off limits to reforms. Ever since economic liberalisation set in, India has been ushered in into a whole new world of change. These reforms have paid handsomely. The economy has grown at more than 6 per cent for a long time, coupled with full macroeconomic stability. This compares with a growth rate of 3.5 per cent during 1950-1980. However, as noted economist Arvind Panagariya writes in a paper on India’s Economic Reforms, the accomplishments of the past decade are dwarfed only by what remains to be done. To begin with, the fiscal deficit is in a dire state. The combined deficit at the centre and states exceeds 10 per cent of gross domestic product. So if we ask as what does economic liberalisation mean, we will end up saying that it is nothing but an overt obsession with the issue which has given birth to an unmanageable problem of inflation?
Mohd Ziyaullah Khan
Nagpur, M’rashtra