The document summarizes India's 1991 economic reforms. It describes the economic crisis of 1991 that caused fiscal imbalances and high inflation. This led to balance of payment issues, rising inflation, falling foreign reserves and a large fiscal deficit. The reforms introduced liberalization, privatization and globalization. Liberalization freed the economy from government controls and opened industries. Privatization transferred public sector industries to private ownership. Globalization integrated India's economy with the global market and opened it to foreign direct investment. The reforms aimed to stabilize the economy and make industries more competitive.

1. Economic Reforms
Presented By
Narayan Reddy

2. Meaning
It refers to the changes
introduced by the govt to
bring improvement in
the economy of the
country.

3. Crisis Of 1991
• The Economic Crisis of
1991 was caused
because of the growing
fiscal imbalances .
• Inflation Rose to 12%.
• Gulf War Swelled up
the prices of oil high
leading to unstable of
forex flows.

4. Need
• Balance of Payment instability
• Increase in Inflation
• Fall in Foreign Reserve
• Fiscal Deficit
• Sick Public Sector Unit

5. Economic Reform

6. Liberalization
Liberalization of the economy means to free it
from direct or physical controls imposed by
the government.

7. Reform taken under Liberalization
o Abolition of industrial licensing and
registration.
o Liberalization of MRTP Act
o Freedom for Expansion and Production
o Increase in Investment limit of small industries

8. Privatisation
It Refers to allowing the
private sector to set up more
of industries that were
previously reserved to public
sector.
• Minority Disinvestment
• Majority Disinvestment
• Complete Disinvestment

9. Advantages of Privatisation
• Privatisation may help in reviving sick
units which have become a liability on
the govt.
• It reduces political influence on decision
making of managers.
• Helps in making public sector units more
competitive.

10. Globalisation
Globalization implies integration of the domestic
economy with the world Economy and
Opening up FDI by Liberalization.

12. Thank you