PATEL COLLEGE OF SCIENCE AND

TECHNOLOGY, INDORE
MBA (F.T.) - III SEMESTER

MAJOR RESEARCH PROJECT

TOPIC: - INDIAN ECONOMIC
REFORMS: START OF A NEW ERA

PROJECT SYNOPSIS

UNDER THE GUIDANCE OF: SUBMITTED BY:

..................................................... VARUN RATHORE.
Enrollment no: DC2016855
 CONTENT

PAGE
S. NO. TOPIC NO.

CHAPTER-I INTRODUCTION

1.1 INTRODUCTION 1

1.2 OBJECTIVES 2

CHAPTER-II LITERATURE REVIEW 3

CHAPTER-III CHALLENGES FACING BY GOVT. 4

CHAPTER-IV ECONOMY DURING AND POST- COVID. 5-6

CHAPTER- V RESEARCH METHODOLOGY. 7

CHAPTER- VI DATA ANALYSIS ANDINTERPRETION. 8-12

CHAPTER- VII BIBLIOGRAPHY. 13

 CHAPTER- I:
INTRODUCTION
1.1 Introduction

Reforms in an economy are infinite, they continuously evolve as per the need
of the time. In case of India’s economy, serious attempts are the need of the
time to improve the situation as 33% of population is still below the poverty
line, many people die of Hunger even after 70 years of independence.
After 1991 reforms Indian government has taken many steps to improve
situation of economy especially in recent years like - ease of doing business,
easy credit, GST, steps towards vocationalization of education & skill
development to provide skilled labor, digitization, formal employment
generation, quick clearance and approvals and so on.
But still there are some gaps which are a matter of concern like Corruption,
Fiscal Deficit, Current A/c deficit, Lack of co-ordination between various
authorities and between central and state governments, uncertain policies,
environmental degradation and disasters, Proper implementation of
programs and schemes and so on.
By studying above issues with available data we can analyze the situation well
which can help to adopt a targeted approach to address these issues.
 OBJECTIVES

● To identify the issues associated with Indian economy

● To describe the recent actions taken by Indian government towards
economic reforms
● To analyze the effects on Indian economy due to these reforms
● To study the changed perception of foreign Investors towards Indian
market
● To identify the economic situation during Covid and in the post-
covid era and steps taken by govt to address the challenges
● To identify further measures that can be adopted to further improve the
current situation
 CHAPTER- II
LITERATUR
E
REVIEW
Indian economy has been one of the most important economies of the world
from ancient times. India had the market share of over 25% of world trade
before British era. India was the biggest exporter of cotton cloth in the world.
Indian spices were very popular especially in western countries. But Indian
economy deteriorated heavily during British rule.
Since independence, Indian government took several reform measures in Indian
economy like – Land reforms, 5-year plans, Promotion to Public sector, Green
Revolution, Nationalization of Banks and the major one Liberalization,
Privatization, Globalization (LPG Reforms) in 1991 due to balance of payment
crisis. 1991 reforms lead to liberalization of policy decisions, simplifying laws
and regulations for private industries, disinvestments in public sector
enterprises, adoption of floating currency prices, easier FDI permissions,
removal of trade restrictions (qualitative and quantitative) and so on. With time
VAT was introduced which recently replaced by GST.

Today Indian Economy is based on 3 key sectors and 1 evolving sector

which have their own challenges:
 CHAPTER-III
CHALLENGES
FACING BY GOVT.

1. NPA’s in Public Sector Banks (PSB’s).

2. Resources, Environment & Climate change.

3. Disasters.

4. Parallel.

5. Fiscal Deficit.

6. Tax-GDP Ratio.

7. Higher Interest rate.

8. Corruption.

9. Economic inequalities.

10.Etc.
 CHAPTER-IV
INDIAN ECONOMY
DURING AND
POST- COVID.

The GDP growth had crashed 23.9% in response to the Centre’s no notice
lockdown. India’s GDP shrank 7.3% in 2020-21. This was the worst performance
of the Indian economy in any year since independence. As of now, India’s GDP
growth rate is likely to be below 10 per cent. India’s fiscal deficit for 2020-21
zoomed to 9.5% of GDP as against 3.5% projected earlier.

The extent to which localized lockdowns and restrictions have been imposed in
the past have impacted the economic recovery timeliness. There is a scope for
sustained fiscal stimulus going throughout the year. To some extent, if credit is
made available to businesses at low-interest rates, then monetary stimulus is also
possible. The second wave has pushed back India’s fragile economic recovery.
Rising inequality and strained household balance sheets have constrained the
recovery. From growing only 4% in 2019-20 to contracting 7-8% in 2020-21 to
staring at another low economic growth recovery in 2021, India has been virtually
stopped in all its tracks. Therefore, fiscal policy must lend a generous helping
hand to lead vulnerable businesses and households towards economic recovery.

Despite the economic devastation caused by the virus, India’s agile response has
been commendable, especially as the country rallied to manage a deadly second
wave of the virus early in 2021. India was the first country to feel the impact of
the virulent Delta variant but quickly swung into action to ensure that as many
people as possible were vaccinated. One billion doses of the vaccine have already
been administered.

In addition to protecting its own population, India has also acted in the world’s
best interest by providing medical supplies and equipment to more than 150
countries across the globe and placing a critical supply of the COVID-19 vaccine
on the world market. Indeed, the pandemic is an inflection point for India to
introspect on its potential as a global leader, especially coming at a time when the
country is celebrating 75 years of independence.

For years, India has supplied crucial drugs and medications to the global market,
more recently investing in the supply of the COVID-19 vaccine to ensure
equitable access around the world.
 CHAPTER-V
RESEARCH
METHODOLOGY

Research Design:
‘Exploratory’ and ‘Descriptive’ both research designs used in this report.

Study Area:
The study is limited to research and analysis of Indian economy. Necessary
data of different foreign institutions (IMF,World Bank,UNO), news updates
from newspapers, magazines and regular published editorials from various
writers analyzed.

Data Collection:
Secondary data collection is used. Data taken from Journals, Articles,
Newspapers, Magazines, Websites, Official sources of government and
international institutions etc.

Analytical Tools:
Authentic sources or websites used to confirm data of various financial
institutions & of government of India. Latest facts and data are included as per
availability.
 CHAPTER-VI
DATA ANALYSIS
AND
INTERPRETATION
Data and graphs of international Institutions and researchers, credit rating
agencies etc. Various topics and critical analysis of each one separately as per
scholar’s views.

Many International institutions praised recent reforms in Indian economy and

released some reports, facts and figures and also gave some suggestions for further
reforms for better growth prospects in future
 RESULTS
&
DISCUSSIONS
Post-independence reform initiatives have done a great job for Indian economy
but still there are many areas which have to be addressed seriously. On one
hand, India is receiving accolades for a sustained growth rate and on the other, it
is still a low-income developing economy. Even today, nearly 25 percent of
India’s population lives below the poverty line. Also, there are many human and
natural resources which are under-utilized.

The Economic Issues in India:

Being a poor country and one of the fastest growing economies in the world, there
are some unique economic issues in India as explained
 SUGGESTIONS /
RECOMMENDATIONS
Under Macro-Economic Reforms

Control Current Account Deficit, need to find balance between growth and
inflation, increase tax revenues by broadening tax base, reforms in
management of public sector banks.

Social Sector Reforms

Reduce wealth and income inequality, increase minimum wages, promote

gender equality, manage migration from rural India, create a new social order
for non-conflicting growth of capital.

Trade and market reforms

Industry and bureaucratic reforms, need to promote free trade agreements with
other countries with keeping in mind the welfare of domestic industries, need
timely review of obsolete laws and regulations, encourage new generation
entrepreneurs by creating opportunities

Agricultural reforms

Encourage the formation of co-operatives, integrate the agricultural market

with measures like E-NAM, rationalize the supply chain, creation of food
processing facilities at various levels, increase agricultural investment for
welfare of rural India.
 LIMITATIONS AND
SCOPE OF FUTURE
RESEARCH
As the subject of the project is quite vast and we can find tons of material,
data, statistics which sometimes becomes too technical in nature. But I
restricted myself to general topics which are more commonly used and keeps
in news.
I tried my best to make this project reader friendly which can be easy to
understand and can provide a broad overview of the subject.
Authentic data is used from websites of various institutions. Finding latest data
and statistics sometimes caused difficulties, a lot of time consuming. So, I
restricted myself only to the important institutions, reports, index etc.
Further research in future could be done on- climate change and depleting
resources. How to make best use of renewable energy resources? These issues
are still not addressed very well by economists due to lack of availability of
data. This issue is going to be the most important one in the near future. By
analyzing these issues and data we can modify our development path according
to it to save our planet earth and human civilization.
 CONCLUSION
There is no doubt that the Indian economy recorded plenty of achievements over
the last 27 years. If the size of an economy provides the first impression of a
country’s political and economic strength, then India has indeed grown since
1991. The nominal GDP that stood at INR 5,86,212 crore in 1991, was pegged
at INR 1,67,73,086 crore in 2018, representing a 22-fold increase. In dollar
terms, India’s GDP crossed the $2.7-trillion mark in 2017-18. Currently, the
country is ranked ninth in the world in terms of nominal GDP. India is projected
to be the second largest economy in the world by 2050. Further, once rebuked for
its “Hindu rate of growth”, a term used to refer to low rate of economic growth,
India has emerged as the fastest growing economy in the world.
Especially, between 2005 and 2008, the economy clocked the nine-percent
mark annually, when the hypothesis of “overheated” economy came to the fore.
With the Indian government revising the GDP growth figures and China
slowing down, India is now being billed as the fastest growing major economy
in the world, with a growth rate of 7.1 percent in 2017-18.

“No power on earth can stop an idea whose time has come,” stated then Finance
Minister Manmohan Singh while presenting the Union Budget in July 1991,
quoting novelist Victor Hugo. But the economy can no longer bank on the ideas
of 1991, but needs to move forward. Moreover, different times have brought to
the fore an evolving set of challenges.

It must be noted that while economic growth is important and needs to be treated
as the necessary condition for economic well-being, it is not sufficient for
human well-being. Unfortunately, even today, the policy core suffers from the
dogma of “growth-fetishism”, and looks at well-being through a reductionist
lens, like in 1991. The paradigm must now change, as evidence is mounting that
economic growth is not a panacea. Rather it can emerge with its own negative
externalities of wealth concentration in a few hands, corruption under crony
capitalism, and environmental pollution for over-reliance on unclean
technology. The concerns of equity and sustainability therefore are important.

Hence, in-short we can say the current path on which Indian economy is moving
may make India biggest economic power in the world in future. But the only
need is- ‘it must be inclusive’ only then it can insure welfare of all its people.

CHAPTER VII
BIBLIOGRAPHY
The Hindu Newspaper
The Indian Express Newspaper
Press Information Bureau
Economic Survey 2018
Annual Budget
Frontline Magazine
Geography and You Magazine
Down To Earth Magazine
NCERT Books of Economics
Indian Economy by Ramesh Singh
Official Websites of Financial
Institutions Internet/Web Browsing