000			01906pab a2200169 454500
008			180718b1998 xxu||||| |||| 00| 0 eng d
100			_aJoseph, Mathew et al.
245			_aIndia's economic reforms: private corporate sector response
260			_c1998
300			_ap.43-63
362			_aJul
520			_aThe economic reforms introduced in India from 1991 involved two aspects for the corporate sector: first, a physical one implying enhanced freedom to produce and trade, and second, financial, having access to more avenues of finance both domestically and globally. Industry and exports grew rapidly after reforms but the growth slowed in the last two years. The study examines the contours of corporate response to reforms based on representative samples of private companies for the period 1991-98. The study finds evidence of shifts in the pattern of finance to take advantage from the emergence of new cheaper sources of funds, large benefits from tax policy changes and limited cost reductions. The private corporate sector has built up large productive capacity during the post-reform period and while capacity utilisation has gradually improved, there exists large underutilized capacity particularly in intermediate and capital goods. Size-wise analysis indicates that the response from large firms has been the fastest but the return from capital employed of those firms has been the lowest. The study also brings out the increasing outward orientation of private firms with export intensity of sales overtaking the import intensity during the post-reform period. Finally, the paper notes a slow-down towards the last two years of the study and points to the need for a fresh round of reforms to rejuvenate the corporate sector. - Reproduced
650			_aEconomic reform - India
650			_aEconomic reform
773			_aInternational Journal of Development Banking
909			_a40623
999			_c40623 _d40623