The reforms period has both positive and negative growth. Some sectors growths are good. Some sector did not show any growth. While some sector grow negatively.
- Agriculture sector declined during the reforms period.
- Industrial sector shows a decreasing growth.
- Service sector improve a lot.
As economy growth is measured by GDP. GDP increased from 5.6% to 8.2% during reform period.
Due to the trade reform, economy benefitted a lot. Foreign direct investment and foreign institutional investment has increased. Foreign exchange reserves also increased. Indian exports sector condition improved. Auto parts, engineering goods, It software and textiles exports increased and India became exporter of these. Inflation is also under control.
But some areas did not improve in this reform period. These involve:-
- Growth and employment- Unemployment increased and growth condition is also not very good.
- Reforms in agriculture- Agriculture sector shown continuous decline. Green revolution helped in improving agriculture. But overall improvement in sector not shown.
- Reforms in industry- Industrial sector occupied to small-scale industry. Government license policy did not allow improvement in industrial sector. Tariff and protections also did not allow improvement in this sector.
- Disinvestment– The process of selling public sector to private sector is called disinvestment. During reforms period government set some target of selling PSEs. Although government able to achieve more than target but making a loss. As PSEs are selling at a low value. Economic condition did not improve much by disinvestment.
- Reforms and fiscal policy– Government expenditure limited during reforms period. Because of which development hampers.