India's reforms of the last 25 years have paid off, despite setbacks

THIS month marks the 25th anniversary of India's pro-market economic reforms, which were launched in July 1991.

Looking back, it is remarkable how far the Indian economy has come since then. And even if the journey has, during some periods, been one-step-forward-two-steps-back, the overall performance viewed over a quarter of a century has been impressive.

The sub-continent is now the fastest growing major economy in the world. Its gross domestic product, which exceeds US$2 trillion, is about six times what it was in 1991. Poverty has been reduced by more than half and all social indicators have improved. Exports have risen 15-fold,…