Hyderabad: Economic reforms implemented in India since 1991 resulted in significant improvement in various sectors of the Indian economy, but more reforms were required, ICFAI Foundation for Higher Education, Hyderabad, Chancellor and former RBI Governor Dr C Rangarajan said.
Delivering an online lecture recently on the topic ‘Three Decades of Economic Reforms in India’ to the MBA students of the ICFAI University, Dr Rangarajan said the reason for implementing reforms in 1991 was to improve the efficiency and productivity of the economy while achieving higher growth and favourable current account situation.
Though the reforms were necessary, they were not enough to achieve growth, as reforms do not lead to growth automatically, he said, adding that non-economic factors are also equally important in achieving growth in the economy.
Speaking on various issues related to economic reforms, Dr Rangarajan said that a surge in FDI inflow indicates improvement in efficiency and productivity in the economy.
In order to improve the competitiveness of the economy, it was necessary to ensure that competition prevails in all the sectors of the economy, he said.
Further, he said that it was important to spend on social security schemes like MGNREGS to reduce poverty. He opined that to become a US$ 5 trillion economy India needs to register a growth of nine per cent per annum for the next five years.
Answering a query on farm sector reforms, Dr Rangarajan said that APMC was a transparent system and farmers should get options to sell their products outside.
ICFAI University Vice Chancellor, professor J Mahender Reddy moderated the session. The lecture was attended by more than 700 participants including eminent personalities like Dr Duvvuri Subba Rao, former RBI Governor, professor R Vaidyanathan, IIM Bangalore, government officials, students, economists, professors, research scholars etc.
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