Economic liberalisation in India

Key concepts

How Economic liberalisation in India connects to the ideas, people and events around it.

1. Open economy

   An open economy is an economy in which both domestic and international entities participate in the trade of goods and services. This type of economy allows for the exchange of products, including technology transfers and managerial expertise.

2. Economy of India

   India has a developing market-oriented economy with substantial state participation in strategic sectors. As of April 2026, it is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP).

3. 1991 Indian economic crisis

   The 1991 Indian economic crisis was a balance-of-payments crisis in which India's foreign-exchange reserves fell to a level barely sufficient to pay three weeks of imports.

4. Government budget balance

   The government budget balance, also referred to as the general government balance, public budget balance, or public fiscal balance, is the difference between government revenues and spending.

5. External debt of India

   The external debt of India is the debt the country owes to foreign creditors. The debtors can be the Union government, state governments, corporations or citizens of India.

6. Remittance

   A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland.

7. Gulf War

   The Gulf War was an armed conflict between Iraq and a 42-country coalition led by the United States in response to Saddam Hussein invading neighboring Kuwait on 2 August 1990.

8. Soviet Union

   The Soviet Union, officially the Union of Soviet Socialist Republics (USSR), was a transcontinental country that spanned much of Eurasia from its formation in 1922 until its dissolution in 1991.

Questions about Economic liberalisation in India