Manmohan Singh

The Indian economy following the 1991 crisis swiftly moved away from central planning economy towards market-based economy with the government having less intervention and control. As a result, companies were operating in what is called emerging

Born in 1869 on October 2. Mohandas Karamchand Gandhi, also known as Mahatma Gandhi lived in Porbandar, a region of India that (at the time) was a part of the British Empire, now known as Gujarat. Growing up, Gandhi worshipped the Hindu god Vishnu. His belief of Jainism aimed to achieve the liberation of the soul, embracing non-violence, meditation and vegetarianism. He believed in Ahimsa meaning non-violence and equality. As a young child, Gandhi was considered being shy, timid and an unremarkable student. Aged 18, he sailed to England to study where he read a variety of sacred texts and learnt more about world religions. He later explains “if only we could, all of us, read the scriptures of the different Faiths from the stand-point of the followers of those faiths, we should find that they were at the bottom, all one and were all helpful to one another” he considered them a comfort and recommended everyone to read them at some point in time. He stayed in England for 3 years before returning back to India where he struggled to gain any footing as a lawyer and wrestled to find work, therefore taking a job offer in South Africa at an Indian firm.

In 2015 India was ranked among the highest countries globally in consumer confidence, this comes after the International Monetary Fund estimated an economic growth of up to 7% annually for the next decade in India. But this hasn 't always been the case, in fact, it wasn 't so long ago that India was simply another colonized nation around the world, not to mention it 's usually rare to see this kind of economic growth in such a small period of time. The Effects of globalization, with an emphasis on open trade networks, and the Imperial developments of the late 19th century have led to the emergence and rise of India 's market-based economy. This growth has been affected in a very positive way over a span of centuries by a combination of stronger economic developments brought about by a massive increase in the countries labor force and the emphasis on education and self-governance. An exposure to both the Western economic systems during the imperial age until their independence in 1947 and their subsequent involvement in the Asian, Middle Eastern and African trade routes from the late 15th century placed India in an economic equilibrium where they were able to benefit from both worlds and become one of the fastest growing economies.

Kumar (1996) compares trends/fluctuations in key macro-economic variables in India pre and post 1991, both before and after initiation of new Indian economic policy in '91. These reforms included, amongst other things, the opening up of the Indian economy for international trade (prior to this India was a socialist state not involved in these markets) plus investment and heavy de-regulation processes. These particular changes to this policy allow for great insight into the impact of de-regulated, international capital trade on previously effective macro-management. He observes that this new economic policy increased economic instability which facilitates speculative activity, particularly resulting from financial sector liberalisation and the opening up of the economy. He adds that the observed increased volatility in economic fluctuations is a result from state intervention under these new economic policies that have reduced policy effectiveness. To quote: "The NEP not only lay greater stress on market forces but on opening up of the economy to foreign capital. This imposes constraints on policies since government cannot control the external environment which is governed by international finance capital- a force far more powerful than the Indian state hence able to dictate to it". He argues that since the interest of

This Topic is an interesting one because many throughout the country are divided on the topic of the Prime Minister and whether or not they hold too much power within their role. With past allegations of corruption, many are blinded by the true powers and limitations of what properly defines the role of our Prime Minister.

“You must be the change you wish to see in the world,” said Indian civil rights leader Mahatma Gandhi. Gandhi, along with Mother Jones and Melba Pattillo Beals wanted equality. Gandhi’s mission was to cease color prejudice, Mother Jones’s mission was to achieve child labor rights and Melba’s mission was to make integration possible. These three individuals fought courageously for equal human rights because they wanted to see a difference in the world.

The separate republics that were facing their own ethnic problems now had to cope with the fact that their citizens were going bankrupt. “From 1989 through September 1990, more than a thousand companies went into bankruptcy. By 1990 annual GDP growth rate had shrunk to –7.5 percent. In 1991, GDP declined by a further 15 percent, while industrial output shrank by 21 percent.” (Kiss). Within all of this more than half of the most prominent banks in Yugoslavia had gone bankrupt, losing all their clients money and anything financial of theirs. 1.3 million workers had lost their jobs by this time (World Bank). The governments of the individual republics refused to pay the preposterous federal taxes or import fees, that had been set up to try to restore some order within the national government. Some republics had access to bill-printing facilities and gave themselves short credit, without the federal government’s knowing. Previously coming into this predicament, “the past 20 years Yugoslavia had a 17% increase in their external debt every year”(Rasjic). The federal government was still taking money from outside countries knowing that they might not be able to pay it back, leading to an eventual collapse of the economy. The US and other countries felt a duty to help since Yugoslavia was a new country and many of the emigrants of Yugoslavia came to the Western countries. Despite the steadily rising inflation of foreign funds as loans,the Yugoslav economy achieved only a slight, if that growth. However, even this modest growth was not sustainable without continued foreign aid. In the 1980s and 1990s, was the only time when the true Yugoslav economy was seen by outside countries and the rest of the world. Just like an alcoholic must face the reality of his addiction, so did Yugoslavia, they faced the reality of the nothingness of Yugoslav economy without external

In the early 1990s, there was economic growth due to industrial deregulation and reduced controls on foreign trade and investment (“Central Intelligence Agency”). India is similar to Iran in this way because Iran also worked to make economic changes in the 1990s. Both reduced how much control and power each government had within their economies; for Iran it was subsidies and for India it was reducing controls on foreign trade. India’s economy has also undergone privatization of what were once

A key factor for Indian economic growth was the ability to trade with other countries. Throughout WW1, India was a flourishing empire in business and economics, and were able to bring in mass quantities of goods to support their country. However, due to their increased support and spending towards Britain, they began coming into more competition with Britain based goods. Before the war, India’s sole trading partners consisted of those in the Central Powers and they were able to obtain a surplus of 6.2 million dollars, but by the next year, they were in debt of almost 14 million dollars, which completely broke their economy down. Selling and making goods for trade also decreased and made millions out of work. Britain began restricting more laws on civil liberties which made the Indian people call for a strike and the man who led the strike was Mahatma Gandhi who urged Indians to leave British-run schools, boycott law courts, quit colonial jobs, and refuse to buy clothing. This strike created a sinister relationship with

The financial progressions initiated need needed an emotional impact on the in general growth of the economy. It also proclaimed the coordination of the Indian economy under the worldwide economy. Those Indian economy might have been in significant emergency Previously, 1991 At remote coin stores went down should $1 billion. Globalization needed its

Petroleum import costs in 1990–1991 increased by half to US$5.7 billion.10 The government had to bear the additional burden of airlifting and rehabilitating 112,000 Indian workers from the Middle East as remittances from the region declined.11 The second shock was global recession: world growth had declined from 4.5 percent in 1988 to 2.25 percent in 1991.12 Export growth in the United States—India’s largest market—turned negative in 1991. Conditions in the Soviet Union, another major export destination, had also worsened. In 1990–1991 India’s exports grew only 4 percent. India was also suffering from internal political instability. The fragile National Front coalition faced a nationwide crisis in the summer of 1990 over its affirmative action policies. By autumn, a campaign by the BJP (an upper caste–dominated coalition partner) to build a Hindu temple at the site of a sixteenth-century mosque in Ayodhya resulted in widespread communal violence. The government collapsed when the BJP pulled out. A new minority government failed to pass the scheduled budget in February 1991 when it lost the Congress Party’s external support. In May 1991, while

In order to finance expenditures on public goods and services that promote growth and increase nations welfare governments often have to borrow this decision of how much to borrow is that of fiscal policy which determines the targeted level of debt based on a sustainability analysis of government debt. The main cause for the increasing domestic debt and its utilization to finance revenue deficit, is the rigidity and the restricted scope for further expansion of the tax receipts and low nontax revenue to meet the growing non-developmental expenditure. This rise in non-developmental expenditure is attributed to interest payments and defense expenditure, accounting for nearly one-third of total expenditure. It is essential to understand the composition of domestic debt, an important feature of fiscal policy. Internal debt, small savings, provident funds, and reserve funds and deposits are the main constituents. With respect to India, internal debt of the central Government is secured under the Consolidated Fund of India and that of the States in the case of the State Governments. The structure of domestic debt has been fluctuating over time in India and the share of internal debt in domestic debt has been declining, but it still accounts for more than half of domestic debt. In India, external debt can only be incurred by the Central

There is an extensive literature written on the Global Financial Crisis of 2007 to 2009. The paper that is currently being researched on focuses directly on evidence from India with the emphasis on the

Even though there was little effect on the Indian financial and banking sector because of their limited exposure to troubled assets, prudent policies of RBI and low presence of foreign banks in the Indian market, there was a change in the market condition following the collapse of Lehman Brothers. With regards to the crisis, India saw a reversal of capital inflows due to heavy sell off by Foreign Institutional Investors which in turn made a downward impact on the domestic stock market. This reason coupled with limited access to other external funds exerted tremendous pressure on the FX market since the dollar liquidity was hampered. The chain reaction followed after this and the

During this period the government had to rely heavily upon the private savings (financing from business houses like Tatas, Birlas etc) . This made these business houses very strong and they gradually started having a strong say in the nation’s policies and economic reforms due to the financial dependency on them.