STUDY ON THE TRENDS IN THE PRE AND POST REFORM PERIOD GDP

Abstract

An examination of the changes that have occurred in India's Gross Domestic Product (GDP) between the pre-reform (1947-1991) and post-reform (1991-present) periods is presented in this paper. A fundamental shift in India's economic policy occurred in 1991 when economic reforms were implemented. This signified the transition from an economy that was largely closed and controlled by the state to an economy that was more open and market-oriented. The objective of this study is to evaluate the growth trajectory, structural changes, and sectoral contributions to GDP over these two separate time periods from the perspective of this research. Prior to the implementation of reforms, the economy was characterized by a mixed economy that placed an emphasis on self-sufficiency, import substitution, and industry headed by the state. Despite the fact that there were some achievements during this time period in terms of industrial progress and agricultural productivity, the period was marked by poor growth in GDP, significant deficits in the budget, and crises in the balance of payments. In contrast, the decade that followed the reforms was marked by fast economic development, increasing foreign investment, and closer integration with the economy of the rest of the world. During this time period, there was a transition toward growth that was driven by technology and services, as well as major gains in GDP per capita and general economic success. A quantitative analysis of GDP data is utilized in this study. This analysis takes into account growth rates, contributions from various sectors, and comparisons between the pre-reform and post-reform eras. Additionally, it investigates the socioeconomic repercussions of these developments, including factors such as discrepancies in job patterns, income inequality, and geographical differences. The findings not only address the issues and discrepancies that have evolved as a result of economic reforms, but they also demonstrate the transformational influence that these changes have had on India's GDP. The findings of this study offer valuable insights into the efficiency of economic policies and the lessons that may be gleaned for the purpose of future economic planning and growth in their respective countries.