India Economic Reform

Essay specific features

 

Issue:

Business

 

Written by:

Paulette O

 

Date added:

September 26, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1262

 

Was viewed:

2594 times

 

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Essay content:

Coming into the 1990s, the external debt had tripled from $22.8 billion in 1983-84 to $69.3 billion in 1990-91. Also by 1990-91, the gross fiscal deficit had grown to about 10% of GDP, of which 4.3% of GDP was for interest payment. In addition, in 1990, the external investors, including the NRIs, started to lose their confidence in India's economy and political stability...
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The political instability in 1990 shown by two changes of prime minister within a year led to the lack of confidence in government's ability to build and manage any improvement in the economy. Two external events also played major roles in triggering withdrawal of capital and deposits in Indian banks by investors and NRIs...
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