Exploration of the Process and Impact of the Rao’s Government Economic Policy Reform on Indian Modern Industrial Development

Abstract

Taking a survey of Indian modern and contemporary history, the reforms implemented during Rao’s administration played an extremely important role in the development of Indian modernization. From 1980s to 1990s, liberalization, marketization, globalization and Neoliberalism had become the world main trends of economic development. During this period, the evolution of the social systems of the Soviet Union and Eastern European countries, the rapid rise of the four Asian tigers and Chinese achievement in reform and opening up made Indian government realized that under such circumstances, reform is particularly important. This paper discussed what process and impact (pros and cons) included in Rao’s reform by using the approach of literature reading. The paper got a significant conclusion that Rao’s new policies provided an effective path for Indian development, broke the traditional closed economic model by changing the structure of enterprise ownership and other scientific approaches. Finally, helped India open the door of Neoliberalism. This study provided experience for developing countries to choose policies and formulate targets.