The Wings of Development

  • Jayaraman K Department of Economics, Periyar University, Salem - 636 011
  • Radhakrishnan N Department of Library & Information Science, Periyar University, Salem - 636 011
Keywords: Economic reform, fiscal deficit, free market economy, investment


Indian Economy is poised for development particularly after the economic reform that was unleashed in the year 1991. The economic reforms must be viewed in the actual happenings in various areas of Indian Economy. The results of the Indian Economy show that the performance of it does notshare the ideals of the proponents of the capitalism or economists aligned with the free market economic concepts. A bird’s eye view indicates a constant deterioration of Current Account Deficit (CAD), Volatile Forex market, oscillating stock market, agrarian crisis accentuated by the onslaught of BT Cotton and Multinational Corporations (MNCs). Due to the widening fiscal deficit, the Govt. of India had to pledge 400 tonnes worth of Gold with the IMF to tide over the problems it faced then. That time the crisis was lesser in magnitude and impact when we compare this to the present situation.