ABSTRACT
This chapter endeavours to provide a description of the evolution of recent macroeconomic scene in the Indian economy. Particular attention is given to the 1980s and the early 1990s, which cover the period of significant macroeconomic adjustment. Macroeconomic adjustment policies can be broadly categorised into two groups - stabilisation policies and structural reforms. While stabilisation policies aim at eliminating macroeconomic imbalances through demand adjustment, structural adjustment policies aim at raising the output growth through policies that bring about major changes in the microeconomic structure by promoting competitiveness, efficiency and dynamism among the production units within the system.
