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CATCH AN ELEPHANT BY ITS EARS
The transformation of the Indian economy from a heavily controlled and State-dominated structure into a market-driven, consumer-oriented and dynamic economic regime is a historic experience. The world is watching the progress and the pace of this transformation with great interest.
Consequent to the 1991 reforms, overall performance has been promising. The growth rate has risen significantly from the earlier average of 5 per cent to nearly 8 per cent today. The savings rate has registered an impressive growth from 23.5 per cent in 2001 to 28.1 per cent in 2003-04. The capital market is buoyant, public offerings in 2005 crossed Rs 20,700 crore and mutual funds have grown fast to become the most prominent sector for raising resources. In this new environment of economic freedom, private sector has emerged as the prime mover of growth.
On the external front exports are rising fast. Contribution of trade has increased from 15 per cent of GDP in 1991 to 30 per cent. Forex reserves have shown marked improvement rising from $ 1.1 billion in 1991 to $ 137 billion. India is now rated as an attractive destination and foreign investment is flowing at an increasing pace. Total ...
