11th Economics Chapter 3
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– Deregulation of Industrial Sector: The reforms in and after 1991 removed industrial licensing for most product categories, allowed market forces to determine prices, and reserved only certain industries for the public sector【4:1†source】.
– Financial Sector Reforms: The financial sector reforms aimed to reduce the Reserve Bank of India's role from regulator to facilitator, allowing financial institutions more autonomy in decision-making. Private sector banks were established, and foreign investment limits in banks were raised【4:1†source】.
– Liberalisation: Liberalisation measures were introduced post-1991 to remove restrictions hindering economic growth, open up various sectors of the economy, and focus on areas like industrial sector, financial sector, tax reforms, foreign exchange markets, and trade and investment sectors【4:4†source】.
– Globalisation: India, as an important member of the WTO, has been advocating fair global rules, regulations, and safeguards while fulfilling commitments towards liberalisation of trade. This includes removing quantitative restrictions on imports and reducing tariff rates【4:2†source】.
What led to the introduction of economic reforms in India in 1991?
How did the financial crisis in India in the 1980s contribute to the need for economic reforms?
What role did the International Monetary Fund (IMF) and World Bank play in India's economic crisis and subsequent reforms?
Why did India introduce measures to liberalize, privatize, and globalize its economy in 1991?
Discuss the impact of economic reforms on different sectors of the Indian economy.
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