Kerala Economic Review 1991

Abstract

The year 1991-92 has been an extremely difficult year for the Indian economy. When the new Government assumed office at the Centre in June last, the economy was virtually on the point of default in external payments with very low foreign exchange reserves, increasing budgetary deficit, rising interest burden on internal and external debt and a high rate of inflation. The growth of the economy, according to the latest Economy Survey of the Government of India is not likely to exceed 2.5 per cent during 1991-92, thus representing a significant shortfall as compared with the performance in previous years.