Three Decades of the Economic Reforms in India

Subject – Economy

Context – Reforms, growth, equity the only way to sustain high growth rate: C Rangarajan

Concept –

In 1980, per capita income of India and China was similar, but by 2020, China’s was $10,500 as against India’s $1,900.
India’s GDP growth increased to 6.2 per cent between 1992-93 and 2000-01 from earlier levels of 3.5 per cent.
- Between 2005-06 and 2007-08, it even touched a high 9.4 per cent.
On the balance of payment (BoP) front, the 10-year itch (of going to IMF for bail out) vanished.
Between 1993-94 and 2004- 05, poverty rates fell from 45.3 per cent to 37.2 per cent. In 2011-12, it fell further to 21.9 per cent.
India should grow its economy at 8-9 per cent for the next 21 years to become a developed nation.
Even to achieve its target of a $5-billion economy from $2.7 billion now, it will have to grow at 8-9 per cent for five consecutive years.