New Economic Policy-Economic Reforms
Policy changes are proposed specifically regarding the technology up-gradation, removal of all restrictions from the corporate sector, industrial licensing, foreign trade, and foreign investments.
“Economic reform” generally refers to deregulation, or in that particular time to reduce the size of the government to eliminate all distortions caused by various regulations. Moreover, the presence of the government increased new and innovative regulations to reduce the distortions which are responsible for the market failure. It also denotes all the fundamental changes which were launched with a plan of liberation for growth of the economic sector and reforms larger cooperation in a corporate sector that is also responsible for growth in the Indian economy. India has got the fourth position in the economic sector all over the world which is also appraised as a mixed economy for international trade.
Economic Reforms: Overview
Economic reforms were mentioned to the neo-liberal policies in India by the Narsimha-Rao government in the year 1991 while India was facing several economic crises for external debt. Moreover, India had adopted the Privatisation, Liberalisation, and Globalisation that all reforms under economic reforms. Generally, structural reforms particularly depend on the trade and price liberalisation, tax reforms, and the labour market which can promote economic growth for the country and fulfil their long as well as short term economic policies. Continuously price rise in India is one of the major reasons and that rate was enlarged from 6.7% to 16.7%. For this reason, the economic condition of India has become poor as compared to the other states. With that, the production cost also increased. Through readjustment, restructuring as well as the development of technology and science increase the income level and the industrial structures that can modify the economic level of India. In this pandemic condition, Laos needs to keep hold of the economic balance. Reforms also led the competition in all kinds of the private sector including banking. Also, it helps to increase the efficiency level and more customer satisfaction so that the investment growth rate will improve in the corporate sector.
Indian Economy
India occupies the fourth position in the world economic status. It can produce approximately 9.4 trillion dollars supporting the annual Indian GDP growth in 2017, which helped in social reformation. In India, several problems continue arising for which the economic growth of India has gone down and these major causes such as education system, corruption, basic sanitisation, healthcare system, and poverty all are responsible. Major problems in the Indian economy all need to be removed as early as possible to get back the position in the sector all over the world.
Low international income level as depicted through statistics has shown that per capita NNP has come down in 2021. It reflected that the economic crisis is prominent in India and requires possible reformation in strategies.
Vast inequalities in wealth and income have also been marked as a major problem which also increased the poverty level in India
The predominance in the agricultural sector also could not improve whatever needs to increase the cultivation rate as well as the trading rate in India
Huge population has pressurised the total system, which is also reflected by the massive unemployment situation for India. It is also responsible to slow the growth rate as compared with other developed countries
Innovative economic policy
India should adopt innovative economic policies to improve its economic condition for which in recent times the GDP condition has also gone down. Through technological and research development policies as well as industrial policies, bringing new ideas to create a strong framework can change the market position of India in the global economic sector. Higher modern technologies, more employment, and increased productivity as well as import and export rate India can effectively manage this sector. Natural resources are one of the major problems where they should take more care to remove it and need to take several steps to modernise the capital equipment.
Conclusion
New economic policy and economic reforms are always crucial to modify the old infrastructure and to keep balance with the changing world. It is necessary to upgrade the overall system to remove all the restrictions or barriers which all will show as a huge problem and responsible for stopping the growth of the economy of the particular country. India occupies the fourth position in the world economic status. Yet, the Indian economy faces several issues with underdeveloped infrastructure, huge population pressure, unemployment, low international income level, and non-development fiscal deficit for that in recent times the economic condition is good for India.