Remaining nearly 43 years of closed economy, The government of India has open the door for foreign investment in the country and implements several economic reforms in 1991, commonly known as economic liberalization.   The goal of economic liberalization was to make the economy more market and service-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalisation has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. Its opponents have blamed it for increased poverty, inequality and economic degradation. The overall direction of liberalisation has since remained the same, irrespective of the ruling party, although no party has yet solved a variety of politically difficult issues, such as liberalising labour laws and reducing agricultural subsidies. There exists a lively debate in India as to what made the economic reforms sustainable.  Before 2015 India grew at slower pace than China which has been liberalising its economy since 1978. But in year 2015 India outpaced China in terms of GDP growth rate. 

  There has been significant debate, around liberalisation as an inclusive economic growth strategy. Since 1992, income inequality has deepened in India.  India's gross domestic product (GDP) growth rate in 2012–13 was 5.1% and economic liberalization apparently failed to address employment growth, nutritional values in terms of food intake in calories, and also exports growth. GDP growth rose to 7.3% as a result of the further reforms taken by the Indian Government.