o Reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment.

o These measures are also referred to as Liberalisation – Privatisation and Globalisation reforms.

o By opening its economy, India sent a strong message that it was interested in economic integration with the world.

♤ Reforms covered all key sectors such as industries, external trade, foreign investment, exchange rate system, banking, capital market and fiscal and monetary policies.

4.1. 25 years of Neo-Liberal Economic Reforms 1991

♤ The average earning of an Indian, measured as per capita income, has risen nearly 15 times since 1991 — from Rs 6,295 to Rs 1,12,835 in March, 2018. Even after adjusting for inflation, incomes have jumped five-and-a-half times, mirroring rising spending power.

♤ Between 2005-06 and 2010-11, the average annual growth rate was 8.8 per cent.