SEMINAR ON ECONOMIC REFORM IN INDIA

The Center for Vietnamese and Southeast Asian Studies just held a seminar on “Economic Reform in India” presented by Prof. Simrit Kaur from the University of Delhi, India at the University of Social Sciences and Humanities – HCM City on November 12 on her business trip to Vietnam.

Present at the seminar were the Director of the Center Dr. Tran Dinh Lam, lecturers, postgraduates and students of the HCM City University of Social Sciences and Humanities, along with the teaching staff of the University of Economics and HCM City National University.

Prof. Simrit Kaur had a general presentation of growth stages of India’s economy. To become one of the countries now having the highest economic growth rate in the world, the economy of India has undertaken many important reforms.

After having achieved independence in 1947, India built up a self-reliant economy on the basis of planning, in which the state strictly controlled the participation of private sector, foreign trade and foreign direct investment. Conditions to develop private economics were not created at that time and the implementation of “licensing” and “replacing import” policies made India’s economy stagnate for a long time. Because India’s industry did not develop, the “replacing import” policy, in particular, which restricted imported goods resulted in a fact that most of goods in India’s market had poor quality but high prices.

At the end of the 1980s, India was hit by an economic crisis. Since 1991, India has carried out a comprehensive economic reform towards an open and free market, well integrating with regional and global economy. India has opened its market through economic reforms which reduce the government’s control on trade and investment as well as promote public economics to attract foreign investment and expand export. India specifically puts great emphasis on its structure reform, enhances the effectiveness of its banks and financial system and increases investment in sectors which can create many job opportunities.

Thanks to appropriate reforms, India’s economy has made considerable progress with a sharp increase in its GDP. The role of India’s government has gradually changed, from a manufacturer to a manufacturing supervisor.

The development of India’s economy has many features in common with that of Vietnam’s. Both have experienced the transition from a centralized planning economy to a market-oriented one, developed a multi-component economy, accelerated the effectiveness of public economics, emphasized export and actively integrated with outside economies, etc.

From the success of India in economic reform process, Vietnam has to learn valuable experience to have more appropriate development policies on its economy.

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