Since independence, India followed the mixed economy framework by combining the advantages of the market economic system with those of the planned economic system. But over the years, this policy resulted in the establishment of a variety of rules and laws which were aimed at controlling and regulating the economy and instead ended up hampering the process of growth and development! The economy was facing problems of declining foreign exchange, growing imports without matching rise in exports and high inflation, India changed its, economic policies in 1991 due to a financial crisis and pressure from international organisations like the World Bank and IMF.