1990-1991 & 1991-1992: Annual Plans and a Turning Point in India's Economy
1990-1991 & 1991-1992: Annual Plans and a Turning Point in India's Economy
The years 1990-1991 and 1991-1992 were a turning point in India's economic history, marked by political instability, a struggling economy, and the brewing of a new economic policy. Let's delve deeper into the factors you mentioned: Internal and External Triggers International: Gulf War: The 1990 Gulf War led to oil price hikes and global economic uncertainty, impacting India's oil imports and trade. Global Recession: The worldwide economic downturn further aggravated India's economic woes, highlighting the need for diversification and new trade partnerships. Domestic: Political Instability: Frequent changes in government leadership and political uncertainty created an environment of instability and hindered economic decision-making. Excessive Socialist Commitment: The reliance on heavy industries and state control in the previous plans led to inefficiencies, bureaucratic hurdles, and a lack of dynamism. Bunching of Loans: The accumulation of foreign debt and loan obligations p…