Liberalization of the financial markets in India

India has launched a major structural adjustment program, with a view to globalization. Since 1991, reforms have been set in motion in all sectors of the economy, resulting in dismantling of bureaucratic controls and infusion of private enterprise and competition. Inflows of foreign capital are being encouraged, while foreign mutual funds have been permitted to trade on the Indian Stock Markets. The streamlining of the Indian economy, which in the medium term has introduced considerable stability, is expected to position India as an important global player in the near future. Vaghul traces the growth and implementation of the reforms as they relate to Indian financial markets.