Indian Economic Reform, Its Conflict with Politics and Outcome Economic reform, political instability, and conflict in India Observers consider 1991 the turning point of India’s economic fate. At this point in time, India’s economic order had already changed a lot from the time when the country achieved its independence. The reforms of 1991 did not begin India’s economic liberalization, but accelerated change and without these reforms, India would not be economically where it stands today. In the 70 years of independence, India has experienced a number of economic crises, often triggered by drought, political instability, or wars with Pakistan or China. Until the mid-1960s there had been the political dominance of the Congress Party in the federal government as well as the governments of all Indian states. This also had harmonizing impacts on economic policy formulation and decision-making. In 1967, the Swatantra Party defeated the Congress Party in nine state elections shaking Con