The Political Economy of India’s Postplanning Economic Reform: A Critical Review

A quarter of a century has passed since neo-liberal economic policies were first adopted in India in 1991 and it is timely to review their outcome. The study is important because there currently seems to be a gap in the literature, since most published research has highlighted India’s overall GDP growth rates. In the post-planning reform period, India reduced the role of the state and public sector, and dismantled controls, while increasing the role of the market and private sector within the economy. As a result, foreign capital investment and foreign exchange reserves improved. The study intends to examine what happened to the industrial sector after neoliberalism was adopted. This article primarily focuses on the discourse about neoliberal economic policy and its effects on Indian economy, especially in the context of sectoral change. The article centres on a critical review of the available literature and a contribution to the substantive topics indicated in the title. The study contributes to the existing literature by focusing on the industrial and the agricultural sector, which has been neglected by the mainstream economists, who have focused largely on growth rates.Key words: Indian economy, neoliberalism, economic structuring, growth rates and poverty