Abstract
A quarter of a century has passed since neoliberal economic policies were first adopted in India in 1991, and it is timely to review their outcome. The study is important because there currently seems to be a gap in the literature since most published research has highlighted India's overall GDP growth rates. In the postplanning reform period, India reduced the role of the state and public sector and dismantled controls, while increasing the role of the market and private sector within the economy. As a result, foreign capital investment and foreign exchange reserves improved. The study intends to examine what happened to the industrial sector after neoliberalism was adopted. This article primarily focuses on the discourse about neoliberal economic policy and its effects on Indian economy, especially, in the context of sectoral change. The article centres on a critical review of the available literature and a contribution to the substantive topics indicated in the title. The study contributes to the existing literature by focusing on the industrial and the agricultural sector, which has been neglected by the mainstream economists who have focused largely on growth rates.
Highlights
The aim of this article is to analyse the pro-market economic reforms in India and, at the same time, to consider its performance and its limitations
Turkey introduced a structural adjustment programme (SAP) nearly a decade earlier than India and it would be interesting to look at its experience. “[SAP] was marked by commodity trade liberalization and export promotion along with price reform aimed at reducing the state’s role in economic affairs....This policy manoeuvre paved the way for injection of liquidity into the domestic economy in terms of short-term foreign capital
The post-liberalisation period has been marked by a new development, which is very different from the pre-liberalisation period, namely, the Indian economy is much more closely integrated with the world economy (Patnaik, 2013a)
Summary
The aim of this article is to analyse the pro-market economic reforms in India and, at the same time, to consider its performance and its limitations. “[SAP] was marked by commodity trade liberalization and export promotion along with price reform aimed at reducing the state’s role in economic affairs....This policy manoeuvre paved the way for injection of liquidity into the domestic economy in terms of short-term foreign capital (flow of “hot money”) Such inflows, enabled, on the one hand, financing the accelerated public sector expenditures, and provided, on the other hand, relief from the increased pressures of aggregate demand on domestic markets by way of the cheapening costs of imports...[] gave rise to significant shifts in income distribution and to an intensification of the on-going processes of transfer of the economic surplus from the industrial/real sectors and wage labor, in particular, towards the financial sectors” (Yeldan, 2006:199). The government is talking about a “Made in India” campaign to raise manufacturing output so that it represents a 25% share of GDP by 2022. (Siddiqui, 2016a)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
