Tariff and tax rates have been simplified and slashed. The rupee has been made partly convertible. Regulations and approval mechanisms have been eliminated or simplified, including many restrictions on imports. It has gone from the world's 16th economy in 1995 to the world's 11th in 1999, and is the fifth largest in purchasing power parity. This is possibly the highest economic growth rate in Asia, one of the highest of any major economy in the world.
Labour relations continue to improve.
There has been little progress on reducing subsidies for food, water, power or loss-making enterprises. This deficit raises the cost of business, reduces investment in infrastructure and drives up interest rates. Weaknesses in infrastructure are a key hindrance to more rapid economic growth, though gaps are being reduced. While telecommunication facilities are improving, reform in this sector is incomplete and systems still lag far behind needs. Airports need upgrading to international standards.