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Page 1 CPT Section C General Economics Chapter 7 Unit 1 Dr C.Anirvinna Page 2 CPT Section C General Economics Chapter 7 Unit 1 Dr C.Anirvinna 1 • Reasons for Economic Reform in India 2 • Reforms in Major Sectors – Industrial, Financial, External, Fiscal Policy 3 • Impact of Economic Reforms on India Page 3 CPT Section C General Economics Chapter 7 Unit 1 Dr C.Anirvinna 1 • Reasons for Economic Reform in India 2 • Reforms in Major Sectors – Industrial, Financial, External, Fiscal Policy 3 • Impact of Economic Reforms on India An Intro. Page 4 CPT Section C General Economics Chapter 7 Unit 1 Dr C.Anirvinna 1 • Reasons for Economic Reform in India 2 • Reforms in Major Sectors – Industrial, Financial, External, Fiscal Policy 3 • Impact of Economic Reforms on India An Intro. After Independence • India followed the policy of planned growth • It pursued conservative policies • The public sector was given dominant position Fiscal Policy was Framed • Private sector to finance development programme • Public investment in infrastructure Page 5 CPT Section C General Economics Chapter 7 Unit 1 Dr C.Anirvinna 1 • Reasons for Economic Reform in India 2 • Reforms in Major Sectors – Industrial, Financial, External, Fiscal Policy 3 • Impact of Economic Reforms on India An Intro. After Independence • India followed the policy of planned growth • It pursued conservative policies • The public sector was given dominant position Fiscal Policy was Framed • Private sector to finance development programme • Public investment in infrastructure Monetary Policy • Regulates financial flows • To keep the inflation under control Foreign Trade Policy • To protect domestic industry • To keep trade balance in manageable limits.Read More
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FAQs on PPT - Economic Reforms - Business Economics for CA Foundation
| 1. What are economic reforms? |  |
Ans. Economic reforms refer to the changes implemented by a government to improve the performance and efficiency of the country's economy. These reforms often involve the introduction of new policies, regulations, and measures aimed at promoting economic growth, reducing barriers to trade and investment, and enhancing market competition.
| 2. Why are economic reforms important? | |
Ans. Economic reforms are important because they can have a significant impact on a country's economic development and overall well-being. By promoting market competition, removing trade barriers, and improving the business environment, economic reforms can attract investments, stimulate economic growth, create job opportunities, and improve the standard of living for the population.
| 3. What are some examples of economic reforms? | |
Ans. Examples of economic reforms include the liberalization of trade and investment policies, privatization of state-owned enterprises, deregulation of industries, tax reforms, financial sector reforms, and labor market reforms. These measures are often implemented to create a more competitive and business-friendly environment, attract foreign investments, and enhance economic efficiency.
| 4. How do economic reforms affect employment? | |
Ans. Economic reforms can have both positive and negative effects on employment. While some reforms may lead to job creation by attracting investments and stimulating economic growth, others may result in job losses due to the restructuring or closure of inefficient industries. The overall impact on employment depends on various factors such as the nature of reforms, the level of labor market flexibility, and the ability of the economy to adapt to changes.
| 5. What challenges can arise during the implementation of economic reforms? | |
Ans. The implementation of economic reforms can face several challenges. These may include resistance from vested interests or stakeholders who may be adversely affected by the reforms, the lack of political will or consensus, potential social unrest or inequality arising from the reforms, and the need for adequate institutional capacity and infrastructure to support the changes. Additionally, external factors such as global economic conditions and international trade dynamics can also impact the success of economic reforms.
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