Okay, students, let us continue with some more points of the need for economic reforms.

To continue number five, it was burden of debts. What is this burden of debts, students, all about? In 1990-91, the total debt of government of India stood at 62.5% of GDP. So what is this, students, you know, whatsoever be the GDP, of that 62.5% was the debt, was the burden on Indian economy. So India was totally caught up into the debt trap. To continue students, in this situation it was very difficult to pay even interest on foreign debts which is a sign of insolvency. What is this insolvency? It is an inability to pay one’s debt. It was impossible for our country to pay even the interest on the borrowing, students.

To continue, this shook, this disturbed the international confidence on Indian economy. All started getting scared, oh my god, Indian economy being debt trapped, insolvent, what is this. You know what, students, this not only made borrowings difficult but also resulted into outflow of deposits of non-resident Indians. So the amount of deposits, deposited by non-resident Indians started making their withdrawals. So there was a need of economic reforms to reduce this burden of debts. Very important point, students.

To continue with number six, inefficient industrial sector. You know what, students, the various controls and regulations in the industrial sector had reduced the efficiency and competitiveness of industrial units. All the industrialists were frustrated so much of regulations, so much of control. So industrial sector became inefficient.

To continue, this has led to stagnant, very slow moving industrial growth, but very important it started rising unemployment, students. So there was need of these economic reforms to convert inefficient into efficiency in industrial sector.

To continue with the next point, point number 7, there was a falling growth rate. What is this falling growth rate all about? Due to all these internal and external problems which we studied in our previous points, students the annual growth rate was just 2.6%, that’s it. And you know what, it actually reached the negative level of minus 0.6% in May 1991. What is this? There was a growth but in minus, oh my god. There was a negative growth, students. So there was a need of this new economic policy, there was a need for these reforms to accelerate the growth rate, students.

To continue with the next need, that is my wave of liberalization. What is this liberalization, students? It refers to relaxation of previous government restrictions. Remove this controlling, remove this licence raj, please. We are feeling frustrated. There was a wave of liberalization, students.

To continue, around 1990 there was a wave of liberalization all over the world. And you know what, students, several communist countries like Poland, China, Hungary, etc., started liberalizing their economies. Now why they started liberalizing? To increase their growth rate. And you know what, students, they were successful in this mission of liberalization. So India got inspired and followed and resulted into this liberalization.

So these were my certain points of need for economic reforms.