CBSE Class 11 Economics Economic Reforms Since 1991 Assignment Set B . Based on CBSE and NCERT guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.
Key points :
Economic feforms or structural adjustment is a long term multi dimensional package of various policies (Liberalisation, privatisation and globalisation) and programme for the speedy growth, effeciency in production and make a competitive enviornment. Economic reforms are adopted by Indian Govt. in 1991.
Factor’s responsible for Economic reforms.
1. Fall in foreign exchange reserve.
2. Adverse balance of payments
3. Maunting fiscal deficit.
4. Rise in prices
5. Failure of public enterprises.
6. Gulf crisis.
* Stabilisation measures : - These are short run measured. Indroduced by Govt to control rise in price, adverse balance of payment and fall in foreign exchange reserve.
* Structural adjustment : These are longrun policies the goal of structurcal reforms is to abolish controls, eliminate bereocratic hurdus. and redtapism and make the decision making process efficient and transparent.
* In the new economic policy 1991, Structural reforms can be seen with respect to :
Liberalisation means removing all unnecessary control and restriction like permits licenses. protectionist duties quotas ect
1. Economic reforms refers, those measures which are adopted for the speedy growth of economy, efficiency in production and make a competitive environment.
2. Due to increasing fiscal deficit the interest paid by the Govt. for the borrowings become 36.4% of the Govt. expenditure. So economic reforms become essential for the Govt.
4. Stock of foreign currency held with the Govt. at given point of time called foreign exchange reserve.
5. Prior to liberalisation, tax structure was highly complicated and evasive. Fearing a heavy burden of taxation it promote evade the payment of tax, so tax reforms become essential for the Govt.
6. Direct taxes are those taxes, the burden of which can not be shifted on to other’s eg. Income tax.
7. Indirect taxes are those taxes the burdon of which can be shifted on to other for example sales tax.
8. Devaluation refers to lowering in the official value of a currency with respect to gold or foreign currency.
9. Privatisation is the general process of involving the private sector in the ownership of operation of a state owned enterprises.
10. Globalisation may be defined as a process associated with increasing open ness growing economic interdependence and deepening economic integration in the world economy.
Please refer to attached file for CBSE Class 11 Economics Economic Reforms Since 1991 Assignment Set B
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