Structural Changes in the Indian Economy after Liberalization — Flashcards

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Economic reforms mean a change in the set of policies from one time period to another. In India, they refer to policy changes introduced since 1991 to improve efficiency, productivity, and profitabili…

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Economic reforms are broadly classified into stabilisation measures and structural measures. Stabilisation measures are short-term steps to control foreign exchange crisis and inflation. Structural me…

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Stabilisation measures are short-term measures intended to tackle foreign exchange crisis and bring inflation under control. They include changes in monetary, fiscal, and exchange rate policies.

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Structural measures are long-term measures aimed at improving the efficiency of the economy and increasing its international competitiveness by removing rigidities in different parts of the Indian eco…

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The New Economic Policy is popularly known as the LPG Model of Growth. LPG stands for Liberalisation, Privatisation, and Globalisation.

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Liberalisation means giving greater freedom to economic agents to take their own decisions. It reduces unnecessary government controls and restrictions on trade and industry.

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Privatisation refers to any process that reduces the participation of the state or public sector in economic activities of a country. It includes disinvestment, transfer of ownership to the private se…

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Globalisation means the opening of the economy for the world market. It connects production, trade, and financial transactions of a country with other countries of the world.