This preliminary and partial assessment of India's orthodox reforms initiated in mid-1 991 shows a mixed outcome so far: overcoming the liquidity crisis, the economy has broadly got back to the growth charted in 1980s, with a modest yet statistically significant slower growth of the secondary sector. The investment-GDP ratio has improved, however, with unfavourable compositional changes; social sector spending has been maintained as allocations for defence and economic services were cut. The fiscal correction has been mainly due to a reduction in public investment and expenditure. Industrial recovery is partial and uneven; and public sector output and profitability improved despite the policy shocks, though their sustainability seem suspect.