• Facebook
• Twitter
• More

Description

In the early 1990s, the Government launched a decisive break from the formerly closed and regulated policy regime by liberalizing economic policies and adopting an outward-oriented approach. Substantial progress was initially made in liberalizing industry, trade, investment, and the exchange rate regime, as well as reforming the financial sector and strengthening capital markets. This opened up almost all areas of the economy to domestic and foreign private investment, bringing about the integration of the Indian economy into the global economy. In parallel, sound macroeconomic management reduced the severe internal and external imbalances, and provided a basis for sustained higher economic growth. Real gross domestic product (GDP) growth recovered rapidly from less than one percent in fiscal year 1992 (FY1992) to almost 8 percent in FY1997, without fueling inflationary pressures (see Appendix 1). Unlike in the past, economic expansion was driven by private investment rather than public sector expenditure, reflecting inter alia the efforts at reducing the government fiscal deficit, as well as improving the incentive structure for private sector resource allocation.

Contents

• Country Performance Assessment
• Country Operational Strategy (COS)
• Sector Strategies
• Regional Cooperation
• Donor Activities and Aid Coordination
• Cofinancing and Catalyzing External Resources
• ADBs Operational Program
• Economic and Sector Work Program
• Local Cost Financing
• Appendixes