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

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 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

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