Question

Distinguish between stabilising measures and structural measures, as taken up by the Government of India in 1991.

Hint:

Stabilising measures tackle short-term crises; structural measures restructure the economy for long-term growth.

Answer 1

Stabilising Measures	Structural Measures
These are short-term policy actions designed to manage economic crises such as inflation, balance of payment deficits, and fiscal imbalance.	These are long-term policy reforms intended to enhance the efficiency and competitiveness of the economy.
Focuses on achieving immediate economic stability.	Focuses on altering the fundamental structure of the economy.
Examples: Currency devaluation, fiscal deficit reduction, monetary policy tightening.	Examples: Liberalisation, Privatisation, and Globalisation (LPG policy), financial sector reforms, trade policy reforms.
Implemented to restore investor confidence and stabilise the macroeconomic situation.	Implemented to foster sustainable growth and boost productivity over the long term.