Read the following text carefully and answer the given questions on the basis of the same and common understanding.
The stabilisation and structural adjustment measures, initiated under the 1991 "Economic Reforms" mark a watershed moment in India's economic policies. For almost three decades since independence, India's development strategy and economic policies were guided by the objectives of accelerating the growth of output and employment with social justice and equity.
Ever since the 1970 's, it was realised that many of the regulations on economic activities have outlived their usefulness and were in fact hampering economic growth and development. In response to this, the government initiated some milder liberalisation reforms for almost a decade since the early 1980 's.
However, the Indian economy soon had to face the Gulf crisis and consequently:
(i) The uncertainties about the oil prices;
(ii) The external payment problems;
(iii) The serious inflationary pressures;
(iv) The scarcities of essential commodities;
(v) The deterioration of fiscal discipline, etc.
These led to the Indian economy on the verge of Economic crisis.
In response to this emerging crisis, the Government initiated a set of stabilisation and structural reforms like:
(i) Reduction in fiscal deficit;
(ii) Containment of growth in money supply;
(iii) An exchange rate adjustment system etc.
The key objective of stabilisation policy was to bring the growth of aggregate demand in line with long term growth path of the economy.
In conjunction, the structural adjustment measures like;
(i) industrial delicensing
(ii) liberalisation of policy regime governing international trade
(iii) deregulation of financial sector
Were taken to improve the supply side of the economy This shifted the long-term growth path of the economy itself completely.