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 aimed at controlling economic crises like inflation, balance of payment deficits, and fiscal imbalance.	These are long-term policy reforms aimed at improving the efficiency and competitiveness of the economy.
Focuses on immediate economic stability.	Focuses on changing the fundamental structure of the economy.
Examples: Devaluation of currency, reduction in fiscal deficit, tightening of monetary policy.	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 promote sustainable growth and increase productivity in the long run.