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Macromanagement and Business Environment: Analysis of the 1991 Indian Economic Crisis

Saraogi, Ravi (2006): Macromanagement and Business Environment: Analysis of the 1991 Indian Economic Crisis. Published in: Perspectives of Future Economists in South Asia No. 1st Published in 2008 (2008): pp. 43-53.

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Abstract

In this paper, we discuss the importance that macroeconomic management, policies and stability have on promoting the business environment of a country. For this purpose, the analysis of the 1991 Balance of Payments (BoP) crisis in India has been done to show how poor macroeconomic management of the Indian economy during the 1980s precipitated the BoP crisis in 1991 and led to the disruption of business environment during the crisis phase. We then look at how the subsequent corrective macroeconomic management and policies led to the restoration and improvement of the business climate in the economy.

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