ABSTRACT
On the business front, 1988 was the year in which the global wave of corporate mergers and acquisitions hit Indian shores. The rise of the middle class, the burgeoning demand for consumer goods, the phenomenal growth of the stock markets and other developments have helped Indian business to come into its own. The middle class comprises salaried employees in government and the private sector, relatively affluent farmers, the rapidly growing numbers of small businessmen, and the growing tribe of professionals. December 1989, India's economy this year presented a decidedly optimistic picture. Foreign exchange reserves fell, highlighting the first of two key problems facing the Indian economy. The second is the government's steadily deteriorating financial situation. Perhaps the key factor enabling the higher growth rate is the improved management of the infrastructural services and industries—power, railways, coal, and steel. Another key transition has been from an economy of shortages to a more balanced demand-supply situation.
