The Positive Impact of Economic Reforms

The following are the various new private sector players in the Indian economy: Air lines, tele vision channels, educational institutes such as schools, colleges and universities, hospitals, mobile phone service providers, financial service operators, courier services, retail sector, etc.

Due to the entry of many such private players, there has been an increase in the competition among themselves to provide the best service to the customers. There are domestic and foreign private sector players in the Indian economy.

For instance, in the air travel sector the private operators are competing among themselves and also with that of the government's. There are nearly twenty private air travel operators in India.

The entry of many private sector entrepreneurs in the aviation sector has ended the monopoly of Air India.

Competition, employment avenues, increase in demand for goods and services, conversion of black money into white, rise in the income for the government, increase in the savings and investment rates, improvement in the relationships among the nations of the world, interactions among the people of several countries,and developments in technological collaborations, are some of the most important positive aspects of the new economic reforms.

The increase in the number of television channels has improved the employment opportunities to the artists, news readers, reporters, editors, technicians, and other technical and non technical staff. The television channels are also competing among themselves to provide the best service to the viewers.

Similarly, the entry of new private entrepreneurs in the education sector has enhanced the competition among many private educational institutes and the government institutes. These new entrants are also responsible for providing employment to the teaching and non teaching staff. Thus, reducing the burden to the government to provide employment to the increasing number of graduates and post graduates.

The increase in the production of goods and services or out put is also enhancing the demand for the factors of production such land, labor, capital, organisation, science and technology.

The new economic reforms are also contributing to the conversion of the black money in to white money. In other words, this policy has been encouraging the investors by several liberal approaches.

Thus the new economic policy could succeed in several aspects such as the reduction of poverty, increase in savings rate, better social infrastructure, enhancing the quality of economic infrastructure such as the communications, improving the quality of life of the people, and of course more employment opportunities.

The draw backs in the new economic policy should be rectified to enhance the growth rates further.


More by :  Tirumala Prasad

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