Evaluation of telecommunication sector in India after liberalisation

Indian economy has been recording impressive growth rates since 1991 due to some major reforms done in Indian history. This can be partly attributed to the multi- sector structural reforms aimed at enhancing productivity, efficiency and international competitiveness of the economy. India was a latecomer to market reforms, embarking on the process only in 1991. The need for a policy shift had become evident much earlier, as many countries in East Asia achieved high growth and poverty reduction through policies which emphasized greater export orientation, encouragement of the private sector, liberalization in the business policies etc. In the recent history the Telecommunications has been considered as the greatest tool for the socio-economic development of any nation. Due to the drastic growth in the information technology and telecommunication sector it has become the important factor for the growth of economy of any nation. Therefore the present study is an attempt to review the need for market reforms and the major reforms taken in the telecom sector, which had lead to increase in efficiency and growth. The first part of the paper is devoted to a brief background on the need for reforms, reforms taken up by the authorities from time to time. Second part of the paper mainly focuses on the evaluation of the performance of telecommunication sector with respect to the growth in number of connections, foreign direct investment, growth in the production of equipments and exports after the liberalization.