Liberalisation and Economic Reforms—Indian Scenario

Abstract

Governments are moving from licensing of commerce to de-licensing. This paper deals with the
concept of liberalisation and the associated economic reforms. It examines the objectives, features
and 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 current
status as the world’s sixth largest economy based on Gross Domestic Product. The growth prospect of
the 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. Famous
Indian entrepreneurs have also played a key role in the economic development of India. Visionaries
like Ratan Tata, Narayan Murthy, and Dhirubhai Ambani have not only created jobs for the Indian
youth but also put India in a position to compete in the World Market. This growth has fuelled many
foreign companies to invest in the Indian market. In recent times, India has also built foreign
relations with world powers such as the United States, European Union, Japan, and Russia. Another
important factor that enhances India’s position as an emerging global entity is the strength of its
armed forces. The Indian military is the world’s third largest defence force, today. Economic
liberalisation is India’s dynamic strength today. This paper analyses the forces and trends of
economic liberalisation and capital market reforms in India.