In the period of 2004 to 2016, there was no major economic
reform in the Indian economy. Prior to 2004, the NDA government during its six
year tenure from 1998 to 2004 had introduced many economic as well as financial
reforms and successfully integrated the old system with the new ones. As it is
the fact that any reform usually takes time to reflect in form of results. The
same was true during that period as well. The benefits of those reforms started
reflecting after only 2004.
As a result of reforms in the economy at structural level,
the GDP growth rates started accelerating and crossed the mark of 8% in 2006.
However this high rate of growth in GDP could not sustain longer in lack of further
reforms required by the changed economic and institutional realities which were
result of globalization as well as economic and financial integration with the
world. Also post 2004 period, government kept on increasing expenditure without
arranging for increase in revenues.
By the end of second term of UPA government, there were
enough sings of fractures in the economy. This alarmed the government to take
curative actions but forthcoming election did not allowed the government to
exercise much required discipline.