India's Economic Crises, Debt Burden and Stabilisation
Synopsis
The current economic scene in the country is under great stress. There is an acute shortage of foreign exchange, external debt is mounting and the inflation rate has accelerated to more than 14 per cent per annum. What is worse, gold has been sold and mortgaged abroad and the Governments, both at the Centre and in the States, are borrowing heavily, not only to finance capital expenditure but also revenue expenditure. The new Trade Policy deregulates several categories of imports and the scope of public sector has been redefined. Besides, foreign equity participation has been raised upto 51 per cent in general and upto 100% in export-oriented industries. This study examines the effects of those policy changes on the Indian economy and should well serve the general economists, economic journalists, policy makers and the intelligentsia.
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