Indian economic forecast: september, 1993

Abstract

Is 1993-94 a reform holiday to build a consensus in the country and a stronger political resolve to undertake a fresh EFF form 1994-95? A battery of committees suggests that, though the government has postponed the EFF negotiations until after the 1993-94 budget, the government is going to announce further reforms in the trade sector and political commitment to reforms. The Government s balancing act of stimulating economic activity and pursuing structural reform, coping with political tensions means that economy has gone into a transition phase. Notwithstanding the decline in the pace of reforms a silent revolution in attitude towards a market friendly economic system is taking place in India.