Economic reforms in India

The process of economic reforms began from the year 1991 when the LPG route was adopted by the Country. India has to adopt LPG under the pressure of IMF. India faced a balance of payments crisis, as a result India had to pledge 20 tonnes of gold to Union Bank of Switzerland and 47 tonnes to Bank of England as part of a bailout deal with the International monetary fund. In addition the IMF required India to undertake a series of structural economic reforms. Since 1991 India has adopted many reforms, as a result developed nations have started preferring Indian market for their investment for the purpose of achieving profit and extending their market. Foreign investors have started investing money in many sectors. Many sectors which were being run earlier as Public enterprises have been transferred to private sector. Indian economy opened for all foreign investors and MNC's.