Due of economic instability in India in the period of 1989-91, no five-year plan was executed. Between the period 1990 and 1992, there were Annual Plans.
In the year 1991, India faced a catastrophe in Forex reserves, left with reserves of about US $ 1 billion. Therefore, under pressure, India took the jeopardy of reforming the socialist economy.
P.V. Narasimha Rao was the 12th Prime Minister of Republic of India & head of Congress Party & led one of the most significant administrations in India's modern history overseeing a major economic transformation & numerous incidents affecting national security.
At that point of time, Dr. Manmohan Singh launched India's free market reforms. It brought the nearly bankrupt nation back from the rim. It was the commencement of Liberalization and Privatization in India.
Modernization of industries was a major highlight of the Eighth Five Year Plan. Under this plan, the steady opening of Indian economy was embarked to correct the mushrooming deficit & foreign debt.
In the meantime, India became a member of the WTO on January 1, 1995.This plan can be termed as Rao & Manmohan model of Economic development.
During Eighth Five Year plan, an average annual growth rate of 6.78 percent against the target 5.6 percent was achieved.
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