Economic Reforms in Asia: India\'s 1991 LPG Policy vs. China\'s 1978 Approach

The 20ࢎ࢚ century saw a boost in the number of economic reforms and policies as people came to recognize the role and importance of economic stability in the evolving world. The primary areas of focus in this research paper are two well known countries: India and China. The Indian economy had reached near stagnation by the late 1980’s. Many argued that it was the complex system of rules, regulations, and licensing that hampered the growth and development of the country. India’s external debt rose and Foreign Exchange Reserves were greatly depleted. The prices of essential goods increased and the country was in deficit. The LPG reforms initiated a major change in India’s economy, bringing about a new era. This paper aims to discuss the details of the reform and contrast it with another such policy.