1991 Economic Reforms

The 1991 Economic Reforms in India marked a significant shift from a closed, centrally-planned economy to a more open and market-oriented one. Triggered by a balance of payments crisis, the government introduced measures to liberalize trade, reduce tariffs, deregulate industries, and encourage foreign investment. Key changes included privatizing state-owned enterprises and easing restrictions on businesses. These reforms aimed to stimulate economic growth, increase efficiency, and integrate India into the global economy. As a result, India experienced rapid economic growth and development in subsequent years, transforming its economic landscape significantly.