China and India are two of the leading economies in the world apart from the United States. It is said that China may soon overcome the USA. India was on the brink of economic collapse in the early 1990s. It was burdened by a 70% increase in the bill to pay for its crude oil import. Meanwhile, the flow of money from Indians living in gulf countries was on a decline. It was then the now-famous liberalisation began. Licensing for over 80% industries was relaxed which triggered a huge growth in the country. Economic policies were altered to bring more foreign direct investment and several industries were decontrolled. Coincidentally, the IT industry found a new fillip due to the Y2K crisis and thousands of young graduates were benefited by the boom. The government had to face stiff resistance from the local industries to alter the economic policies. However,the government went ahead with the economic measures. Banking underwent a huge change too. . Banks started giving away loans more freely. Reforms made their presence in other major industries. Along with this, the government focussed on infrastructure development like the four-laning highways which link four metro cities. And then in 1993-94, private players were allowed to enter the airline industry. This ushered in a huge inflow of domestic airlines. Now, the country is in a healthy shape attracting good foreign direct investments. The only industry which has been sidelined is agriculture. Its share in the GDP is declining.
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