chapter 1 the indian economy an overview following independence india pursued a development policy based on centralised planning regulation and control of private enterprise state ownership trade protection limits penetration foreign capital technology this regime determined s economic until mid 1980s when there began some movement towards liberalisation market orientation experienced crisis in its balance payments early 1991 which threatened to destabilise response government implemented programme structural reforms aimed at stabilising promoting reliance mechanisms broadly referred as main components were exchange financial sector budget deficit inflation money supply great deal significance was placed promotion transfers investment key areas well further macro performance translated into fairly robust almost all fronts average gross domestic product gdp growth during period 1992 93 2003 04 healthy 6 per cent
