Finance Minister P. Chidambaram's maiden budget for the residual part of financial year 1996-97 indicates reforms will continue.
Economic liberalisation has been beneficial for the country.
Even industry has recovered from the early shocks and the temporary recession caused by the reforms in the first three years (1991-94).
During that period, the severely depleted foreign exchange reserves (down to US$1.5 billion, equivalent to 20 days' payment for petroleum supplies) and an adverse balance of payments situation forced the Rao government to clamp down on imports and bank credit.
There was consequently a sharp reduction in industrial output during 1991-92.
N. Vaghul, chairman of the Industrial Credit and Investment Corporation of India, said: 'Recovery in the subsequent two years was also slow owing to inherent adjustment lags in the process of restructuring, a slowdown in imports, prevailing high rates of interest and corporate taxes.' But the situation has changed since then.