ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A


 Economic Reform and Budget 1994-95 The experience of the Indian economy in the recent months has been quite bizarre: foreign exchange reserves have kept piling up, with the government apparently not knowing what to do with them, even as economic growth continues to atrophy. Why does a government find itself incapable of pursuing expansionary economic policies even in situations characterised by industrial stagnation and accumulating foreign exchange reserves? This is an important theoretical issue. 917 The major flaws in the structural adjustment programme lie in two areas and there is no serious attempt in the 1994-95 budget to correct them. First, there is insufficient appreciation of the importance of infrastructural investment and large-scale deployment of resources in selected industries in order to make them internationally competitive within a specific time-frame. Second, the government does not seem to have any effective plan for raising agricultural investment and production

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top