Critical appraisal of the different paradigm changes in economic policies with liberalization of the Indian Economy in the nineties.

Abstract

This paper briefly explains which situations led to the government of India to liberalize its economy and what were the major macroeconomic reforms. It focuses mainly on the financial sector reforms, the impact of those on our economy and tries to make sense of those reforms and highlight their fallacies. Part 1 explains how the 1991 crisis occurred. Part 2 gives a short overview of what changes were brought about in the Indian economy. Part 3 does a separate analysis of the financial sector reforms enlisting the changes brought about in the financial sector and their effects on our economy. Part 4 focuses on the critiques of the reforms. Part 5 presents the bigger picture by taking a bird’s eye view and the concluding remarks.