Impact of Economic Reforms on FDI and GDP After 1991 in the Case of India

Abstract

Abstract: The aim of the present study was to examine the impact of new economic reforms after 1991 on the Indian economy in general, GDP1 growth rate and FDI2 inflow. The Economic and political policy intervention were reflected on the economic development of the countries with respect to improving considerable growth rate in GDP and FDI. Specifically in the Indian context, the economic decisions have been a considerable influence on the inclusive growth rate of the nation as well as standard of living. It is evidence that India started the economic reform in 1991, after the crisis of balance of payment3 (BOP). After that the government initiated economic reforms basically to provide an environment of sustainable growth rate and stability. During the reform period, a considerable number of policies were introduced. After that the government of India has introduced three key policies which are liberalization, privatization, globalization (LPG). This study, with the help of secondary data, shows that after the reforms, the economy’s growth rate started increasing positively and stable. Keywords: Economic reforms, Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Economic growth, Growth rate of India, India after 1991, etc.