Liberalisation and Economic Reforms—Indian Scenario

V. Basil Hans

Abstract

Governments are moving from licensing of commerce to de-licensing. This paper deals with theconcept of liberalisation and the associated economic reforms. It examines the objectives, featuresand content of the reforms in India. It also analyses the impact and challenges to the reforms. Today,India is recognized as one of the fastest growing economies in the world. This reflects in its currentstatus as the world’s sixth largest economy based on Gross Domestic Product. The growth prospect ofthe Indian economy looks positive because it has a large percentage of the young population. Further,India also has the 2nd largest population of fluent speakers of English–the global language. FamousIndian entrepreneurs have also played a key role in the economic development of India. Visionarieslike Ratan Tata, Narayan Murthy, and Dhirubhai Ambani have not only created jobs for the Indianyouth but also put India in a position to compete in the World Market. This growth has fuelled manyforeign companies to invest in the Indian market. In recent times, India has also built foreignrelations with world powers such as the United States, European Union, Japan, and Russia. Anotherimportant factor that enhances India’s position as an emerging global entity is the strength of itsarmed forces. The Indian military is the world’s third largest defence force, today. Economicliberalisation is India’s dynamic strength today. This paper analyses the forces and trends ofeconomic liberalisation and capital market reforms in India.

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