Present Govt.'s (1998) economic policy as per their national agenda

1. “We will continue with the reform process, give it a strong Swadeshi thrust to ensure that the national economy grows on the principle that ‘India shall be built by Indians’ ; reappraise and revitalise reforms through giving primacy to removal of unemployment, and to an accelerated development of infrastructure, particularly energy and power production”.

We will bring GDP growth to the 7-8% bracket, and control deficits-fiscal and revenue. We will take all such steps as would expedite implementation of policies and programmes in accord with our national interests; and give to the entire national development efforts a humane face with total eradication of poverty as the ultimate goal. For this ‘Berozgari Hatao’-eradicate unemployment- is our call.”

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

2. “We will carefully analyse the effects of globalisation, calibrate the process of it by devising a time-table to suit our national conditions and requirements so as to not undermine but strengthen the national economy, the indigenous industrial base and the financial and services sectors.”

Image Source:


3. “We will earmark 60% of the Plan Funds for and the effect public investment in agriculture, rural development, irrigation and by diverse incen­tives, including tax shelters, achieve a quantum leap in agricultural produc­tion so that agriculture, horticulture, forestry, food processing fisheries and soon become the vehicles for growth resulting in an enhancement of the purchasing power of the people.

Effective clop insurance schemes will be introduced. Special efforts will be made in Animal Husbandry, Dairying, particularly in respect of Cow and its progeny. This is one of the routes to generating employment, thus eradicating hunger and poverty in rural as well as urban areas.

We will continue with farm subsidies but make them more direct, efficient and specific. Development of medium and small scale irriga­tion projects shall receive priority attention; emphasis for investment here will be in accordance with the potential for development.”


5. “We will adopt a National Water Policy which provides for effec­tive and prompt settlement of disputes and their time-bound implementa­tion.”

6. “We will increase the national savings to 30% of the GDP in the next five years by appropriate incentives and through motivation ; encourage Foreign Direct Investment in core areas so that it usefully supplements the national efforts and discourage FDI in non-priority areas.”

7. “We will institute a comprehensive study of the financial, techno­logical and social security requirements of the self-employed and unincorporated sector, also constitute a Development Bank to promote this largest segment of the national economy which, too, has great employment and self-employment potential.

Further, in addition to financial support insti­tutions we will bring into being other institutional systems for providing services, technology and marketing facilities for artisans, the small-scale, village, khadi, power loom, handloom, handicrafts and such other industries.


This and the Agriculture sectors are an untapped source with unlimited scope for generation of employment.”

8. “We will give a major thrust to infrastructure development, par­ticularly energy and power, by recommencing public expenditure in the sector.

Towards this we will access long-term funds in the national and international markets, remove administrative bottlenecks, reverse the slowdown in this critical area of national economy, thus giving a fresh impetus to growth.”

9. “We will undertake a review of all laws and regulations relating to industry so as to free reform bureaucratic control; institute a system of voluntary compliance with laws, including tax laws; ensure speedy redressal of industrial sickness; arrange for meaningful interaction between industry and government; and revive the capital market as a viable and transparent mechanism for raising capital.

We will also expedite comprehensive reform of the PSUs, including restructuring, rehabilitation and divestment.”


I'm Jack!

Would you like to get a custom essay? How about receiving a customized one?

Check it out