Answer Outline: Descriptive ESI for RBI Grade B 2023 – Indian economy after the BoP crisis of 1991

Here is an answer outline with hints for the topic “Analyze the Indian Economy after the BoP crisis of 1991”:

  • Introduction
    • Define the Balance of Payments (BoP) crisis and explain how it affected the Indian economy in 1991.
    • Discuss the reasons for the BoP crisis, including the Gulf War, the decline in remittances from Indians working abroad, and the government’s excessive spending.
  • The reforms of 1991
    • Explain the reforms that the Indian government implemented in 1991 to address the BoP crisis.
    • Discuss the impact of these reforms on the Indian economy, including the rise in foreign investment, the growth of the services sector, and the decline in inflation.
  • The current state of the Indian economy
    • Discuss the current state of the Indian economy, including its strengths and weaknesses.
    • Evaluate the success of the reforms of 1991 and discuss the challenges that the Indian economy faces in the future.
  • Conclusion
    • Summarize the main points of the essay.
    • Offer your own opinion on the future of the Indian economy.

Here are some hints for each of the sections:

  • Introduction
    • The BoP crisis of 1991 was a severe economic crisis that caused the Indian rupee to devalue by 40% and led to a sharp decline in economic growth.
    • The reasons for the BoP crisis included the Gulf War, the decline in remittances from Indians working abroad, and the government’s excessive spending.
  • The reforms of 1991
    • The reforms of 1991 were a series of economic reforms that were implemented by the Indian government in response to the BoP crisis.
    • The reforms included the liberalization of the economy, the privatization of state-owned enterprises, and the deregulation of the financial sector.
  • The current state of the Indian economy
    • The Indian economy is currently the fastest growing major economy in the world.
    • The economy has grown at an average rate of 7% per year over the past decade.
    • However, the Indian economy still faces a number of challenges, including poverty, inequality, and corruption.
  • Conclusion
    • The reforms of 1991 have been a success in many ways.
    • The economy has grown rapidly, foreign investment has increased, and inflation has declined.
    • However, there are still challenges that need to be addressed, such as poverty, inequality, and corruption.