Beruflich Dokumente
Kultur Dokumente
INTRODUCTION (continued)
Break from the Hindu rate of grown of 3.75% per year from 1950-80 Piece-meal and hesitant reforms of 1980s accompanied by fiscal profligacy and debt accumulation generated unsustainable growth Macroeconomic crisis of 1991 Approach to IMF and the World Bank
INTRODUCTION (continued):
Systemic reforms Initiated Reforms not reversed as they were after the 1966 crisis Collapse of the Soviet Union Chinas rapid growth after 1978
Peak rate of 7.8% in 1996-97 Since then fluctuations in the range of 4% 8.5% Adjustment for monsoons and business cycle
4. CONCLUSION:
Reform process stalled Plethora of committees and commissions to study issues studied several times earlier Actions cannot be delayed in several areas Further opening of the economy to external competition Have to move away from protectionism Attract larger inflows of FDI including in manufacturing Push for further liberalization of trade in goods and services in the Doha Round
CONCLUSION (Contd):
Financial sector reforms including further divestment Set up a date certain for capital account convertibility Fiscal consolidation Tax and Expenditure reforms Rethinking Fiscal Federalism Privitization National Investment Fund