Impact of economic reforms on sustainbility and development of nation

Economic reforms means reducing the control or size of the government or deregulation to remove the hurdles caused by the government, rather than the implementation of new regulations or arrival of new government programs to decrease market failure. Economic reforms were started in 1991 by the government of India for speeding up the development of country through liberalisation, privatisation and globalisation. This paper focuses on the need of economic reforms, which arises due to increase in fiscal deficit, increase in adverse balance of payment, problems due to Gulf crisis, fall in foreign exchange reserve, rise in prises, poor performance of public sector. The immediate priority of the govt. was to stabilize the economy and bring it to the normal track to earn the confidence of nation and international financial community by focusing on fiscal correction, industrial decontrol and balance of payments, to achieve sustainable development and growth of the nation.