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Unit 4: Economic Reforms in India Since 1991
Dilfraz Singh, Lovely Professional University

Unit 4: Economic Reforms in India Since 1991 Notes

CONTENTS
Objective
Introduction
4.1 Economic Reforms in India Since 1991
4.2 Summary
4.3 Key-Words
4.4 Review Questions
4.5 Further Readings

Objectives

After reading this Unit students will be able to:
• Discuss the Economic Reforms in India Since 1991.
Introduction

It is now about 15 years when the reform process was initiated in 1991. There is near unanimity
among political parties regarding the implementation of economic reforms. The two major political
parties-Congress and the BJP have a common agenda of economic reforms. Even the left political
parties - CPI, CPI (M) and Janata Dal (United) are not opposed to economic reforms. However, they
stress that the interests of labour and the common man should not be ignored and the reform process
should not follow the dictates of capitalist lobbies. Similarly, regional parties have also been wooing
foreign capital to undertake investments in their states. Thus, every political party is keen on
accelerating the pace of economic reforms to acquire higher GDP growth, enlarge investment in
infrastructure, and persuade Indian big business and multinationals to promote investments. It is
believed that the levels of living of the people cannot be improved unless the growth process is accelerated
and the country achieves a sustained growth of GDP of 7-8% for over a decade or two in future.
4.1 Economic Reforms in India Since 1991

There is near unanimity among major political parties on the implementation of economic reforms.
The agenda of the two major political parties viz., the Congress and the Bhartiya Janata Party have
shown a very large consensus about economic reforms. Janata Dal, CPI, CPI(M), though indicated
some shades of difference, have also accepted the reform package. Some of the regional parties like
DMK. AIDMK. Samata Party, Samajwadi Party, the Rashtriya Janata Dal also woo foreign capital to
undertake investments in their respective states. In nutshell, it may be pointed out that a consensus
has been achieved in the country to introduce and implement economic reforms so as to accelerate
the process of development.

Economic Reforms in India were introduced in 1991 by the Congress government
led by Mr. P. V. Narasimha Rao.

The reforms process has completed 17 years and this cannot be considered as too short a period to
assess the impact of economic reforms. It would, therefore, be proper to undertake an appraisal of the

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