Major Challenges and Way Forward

India embarked on the process of economic liberalisation in 1980s and subsequently started the opening up of the economy which reached the zenith with Liberalization, Privatization and Globalization (LPG) reforms of 1991. It marked a clear shift in the ideology of Indian economic policy which is evident in the transition from virtual state monopoly to a more market-friendly regime. Structural reforms were incorporated to improve the efficiency and international competitiveness, by removing the rigidities in various segments of the economy. The government initiated variety of policies which fell under three heads viz. liberalisation, privatisation and globalisation.