Abstract
The active role of state through an increased level of government outlay has been key determinant of aggregate demand in India and thus led to enhanced growth rate coupled with active participation of private sector in 1990s. The sound macroeconomic parameters, albeit, with intermittent variation do profoundly tells success story of market friendly economic reforms vis a vis dynamic & effective state intervention through state sponsored market friendly measures to boost aggregate demand in post liberalisation period.
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