Amrit Festival of Independence: About 3 decades ago, in 1991, there was a phase in India when India took the initiative of economic liberalization in the midst of a deteriorating economy. Made extensive reforms regarding the economy and India responded to the economic crisis…
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About 3 decades ago, in 1991, such a period also came in India when India took the initiative of economic liberalization in the midst of a deteriorating economy. This was a time when liberalization in trade and industry was considered necessary. Made extensive reforms regarding the economy and India responded to the economic crisis. Actually, due to the serious problem of balance of payments, economic crisis arose in the country in 1991. This had a direct impact on the industry in the country.
TV9 Bharatvarsh is taking India on the journey of India’s independence from 1947 to 2022, in which it is telling what historical work India did in which year. In this sequence, today the talk is of the year 1991.
New economic strategy implemented
India started efforts to solve the economic crisis. Adopted a new economic strategy. For example, the permit system was abolished. The role of the states was decided. As a result, in the first 10 years of the 21st century, India was counted among the emerging markets. The steps taken by the government for change got relief for Indian enterprises. The country’s economy gained momentum and the poverty rate decreased.
was going through such a phase
In 1991, the crisis was aggravated by domestic demand, due to which the current account deficit increased. Tons of gold were pledged during that period to save the country in state debt. India had almost run out of foreign exchange to pay for what it was importing. For this help came from the International Monetary Fund and the World Bank.
Why did this situation happen
According to media reports, the Soviet model was implemented in the country since 1950. It was such a model in which the government of the country used to decide the quantity and prices of industrial products. Whereas usually the market decides which product to manufacture and how much. The work of the market was started by a group of bureaucrats and economists in the country.
This group started deciding how many cars and scooters would be manufactured in the country? How much raw material will be exported from other countries? What will be produced and at what price will it be sold? To increase the revenue, the government increased the tax. started giving loans. The result is inflation and a rise in prices. Thus the crisis deepened.