Planning Commission - Annual Report 1994-95

Abstract

The stabilisation and structural adjustment measures, initiated since July, 1991 by now commonly referred to as "Economic Reforms" mark a watershed in the country’s economic policies. For almost three decades since Independence, India’s development strategy and economic policy were guided by the objectives of accelerating the growth of output and employment with social justice and equity. The emphasis was on distributive justice, regional balance and alleviation of poverty. However, the instruments of our policy to achieve our national objectives, in the absence of adequate flow of domestic and international resources, were increasingly characterised by (i) trade and exchange controls, (ii) selective access to foreign investment, (iii) discretionary controls on industrial investment and capacity expansion, (iv) dominance of the public sector in industrial activity and (v) public ownership and regulation of the financial sector. Since July, 1991 far-reaching changes have been made in each of these elements of economic policy.