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Answer» Objectives: - To encourage private and foreign investments on a large scale. This would then utilize India’s abundant natural and human wealth for its economic development that too with higher productivity.
- Optimum and efficient allocation of India’s resources.
- Reduce and restrict state expenditures. Organize resources obtained through disinvestment of non-performing public enterprises in such a manner that their utility can be increased and public welfare can be done from the same.
- Increase domestic income, employment and export income of the country.
- Increase competitiveness of the Indian economy.
- Ensure steady economic growth and development of the Indian economy in the long run.
- In order to fulfill these objectives, in 1991, the government of India started making systematic reforms in its economic policy.
The economic reforms focused on three main components. They are: - Liberalization
- Privatization and
- Globalization.
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