Economic Reforms and its Impact on Developing Countries - A Case of India

Globalization has affected the various economies of the World differently. However, globalization has Created inequalities in the developing countries of the world. IMF & WTO have mismanaged the process of privatization, liberalization and stabilization that many third world countries now are actually worse off than they were before. Various factors such as social set up, internal conditions, political stability/instability, formulation and proper implementation of policies etc. by the government greatly affect the economic development of a country. India has become one of the fastest growing economies of the world. The growth of the economy has been very fast in the last 15 years or in other words after the introduction of economic reforms in 1991. Contributing to this acceleration is a broad series of reforms including financial sector reforms, increased globalization and widening and deepening of product and financial markets. But, these reforms could not contribute to the equal distribution of economic development in all the sections of society. The operational structure of Indian economy altogether changed as it has become more open for global perspective. In this paper, an attempt has been made to study the impact of economic reform which were introduced in 1991 for uplifting the Indian economy suffering from severe crisis at that time and to understand how they affected all the segments of Indian society