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INFLECTION POINT ANALYSIS
1992-1993: The Indian Economy had just been exposed to the Economic Reforms, however, the rate of implementation of reforms were slow. One of the worst scandals, the security scam involving the misappropriation of 50billion rupees, revealed the vulnerability of economic and financial institutions. The rate of implementation of reforms was also slow as there were a severe shortage of trained economists to evaluate, examine and articulate policy initiatives.
1993-1994: The annual rate of inflation had reduced from the peak of 17% in August, 1991 to below 7%. International confidence has been restored. Agriculture has performed well in the current year and industrial production was beginning to recover. The growth of the economy, which had declined to 1.2% in 1991-92, was around 4% in 1992-93.
1997-1998: The Asian financial crisis of 1997-99 caused heavy devaluations in competing countries in Asia, a collapse of demand in Asia, and so a collapse of India's industrial and export growth. There followed the shock of the Pay Commission award, which bankrupted the Centre and states. However, Effect of Implementation of Reforms bore fruits in terms of Domestic Economic Development
1999-2000: The reduction in GDP can mainly be attributed to the Drought which impacted agricultural productivity and overall growth.
2002-2004: The year of 2003 witnessed the Worldwide Economic Boom wherein World Economic Growth averaged 9%.But after 2002 India suddenly experienced a spurt in manufacturing, involving design, customisation and innovation. The Pharma industry had moved from reverse engineering to full-blooded molecular research. The auto industry, which requires constant design improvements, took off. So did capital goods, which need customisation. India became a global R&D hub. Total factor productivity shot up.
2005-2007: Years 2005-2007

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