1. Pre-1991 Reforms
- 1948 Industrial Policy: Mixed economy model (public + private sectors).
- 1969 Bank Nationalization: 14 major banks taken over by govt. to boost credit flow.
- 1980s Gradual Liberalization: Limited privatization & tech imports allowed.
2. 1991 LPG Reforms (Landmark)
Trigger: Balance of Payments crisis ($1.2 bn forex left → pledged gold).
Key Changes:
- Liberalization:
- Abolished License Raj (Industrial Licensing for most sectors).
- FDI limits raised (e.g., 51% in 34 industries).
- Privatization:
- Disinvestment in PSUs (e.g., sold stakes in Maruti, VSNL).
- Navratna Status to top PSUs (e.g., ONGC, IOC).
- Globalization:
- Rupee devaluation (20% in 1991).
- Joined WTO (1995), reduced import tariffs.
Outcome: GDP growth jumped from 1.1% (1991) to 7.5% (1996).
3. Sector-Specific Reforms
A) Tax Reforms
- GST (2017): Replaced 17 indirect taxes with 4-tier structure (5%, 12%, 18%, 28%).
- Direct Tax Code (Proposed): Simplify income/corporate taxes.
B) Financial Sector
- RBI Autonomy (1994): Monetary policy committee (MPC) formed (2016).
- Insolvency & Bankruptcy Code (2016): Faster resolution of bad loans (NPA crisis).
C) Agriculture
- APMC Bypass (2020): Farmers can sell outside mandis (controversial → repealed).
- e-NAM (2016): Online national agriculture market.
D) Digital Economy
- UPI (2016): Revolutionized digital payments (#1 globally in 2023).
- Aadhaar-Linked Subsidies: DBT (Direct Benefit Transfer) saved ₹2.2 lakh cr (2014-23).
4. Recent Initiatives (2014-2024)
- Make in India (2014): Boost manufacturing (PLI schemes for electronics, pharma).
- Atmanirbhar Bharat (2020): COVID-19 stimulus (₹20 lakh cr package).
- National Monetization Pipeline (2021): Lease PSU assets (roads, railways) for ₹6 lakh cr.