Until 1991, India continued to follow the model of economic development where state planning and public sector enterprises were the levers of growth. This model delivered a dismal growth rate of 3–4 percent. At the same time, regulations on all fronts prevented India from becoming part of the global economy. In 1991, the government, forced by a shortage of foreign exchange, liberalized the economy. The reforms had a tremendous positive impact, both economically and politically. The economy grew at a decent rate, creating opportunities in all sectors. Yet, considering the size of India’s population, many more reforms are needed on a continual basis. For example, inefficient firms must be eliminated. Corruption must be controlled. As India stands today, it looks to current Prime Minister Modi to take bold steps in leading the country to abolish poverty, and creating a substantial middle class.
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