DMPQ:Economic reforms of 1991 was the major landmark in Indian Economic History. Outline the reasons which forced India for economic reforms.

The  major reasons are: Rise in Prices and galloping inflation. It surged from 6.7% to near about 16% Increase in the Fiscal deficit. Increase in non -development expenditure. Adverse Balance of payment and pressure on Balance of Payment. Iran-Kuwait war led to increase in Petrol price and hence pressure on Indian Imports. Adopted approach of … Read more

DMPQ: Post 1991 Indian economy saw a sudden change in outlook. To bring reforms in the financial sector GOI set up Narsimha committee. Discuss its recommendation.

It was in the wake of the Liberalisation in 1991 that it cecame imperative for the government to reform the financial sector in order to reinvigorate the economy. GOI set up committee under the guidelines of  Narsimha. Recommendation: It advised the RBI not to use CRR as a principal investment of monetary and credit control … Read more