Economic Analysis:
After 1990 India is marching forward with its new economic policy. Some highlights of the economic policy is as under:
–Liberalization: Earlier India had a very strict licensing policy for the companies, but now the doors has been opened by the govt. Now India has got over 12000 companies listed on NSE and BSE.
–Modernization: India has become among the leading countries in the world in terms of technology and latest developments. During 2000 to 2005 Indian IT industry grew multifold.
–Globalization: India is among top 3 countries in the world in consumption of food articles, household items, automobiles and technology. Every one want to target Indian masses. Now, Indian Govt. has also taken steps towards inviting FIIs, FDIs and other investors to contribute in the growth of the country.
–Extension of Privatization: There are various examples of privatization and public private partnership. For instance: Banking, Insurance, Power, Infrastructure, Petroleum etc.
–Structural Reforms: Govt. need to take steps to help corporate and retail sector to contribute to the growth of the country. Govt. has control over funds flow, policy formulation, fiscal allocation etc. It’s the duty of the Govt. to use available funds & resources in the best manner.
–Financial Reforms: Budget is always a significant issue for the economy of the any country. Managing liquidity, encouraging investments, making growth oriented tax reforms are the key concerns.