Post-Socialist India: A Ten Year Report
A special survey published in the June 2, 200l issue of The Economist assessed India’s economy ten years after it launched major economic reforms, including lowering trade barriers, devaluing the rupee, and abolishing industrial licensing, which dictated to businesses just how much of a particular product they could manufacture. The conclusion was “On most measures, the reform was a triumphant success.” Economic growth during the 1990s made India one of the world’s fastest-growing economies. Foreign investment increased from “next to nothing” to over $2 billion per annum. India’s share of world exports rose from 0.4 percent in 1980 to 0.7 percent in 2000. India now has accumulated $40 billion in foreign exchange reserves, after nearly defaulting in 1991 on its external debt. Furthermore, price inflation has declined from 14 percent in 1991 to 4 percent in 2000.