This work examines the influence of reforms in the 1990s regarding the agricultural development in India. Many studies have analysed the impact of these reforms but most of them focused on foreign trade or the industry and service sector rather than on the agricultural sector. After India gained independence, the government strengthened its role in the economy by nationalizing many industries, taking control over large parts of the private sector and adopting a high level of protectionism in foreign trade. During the 1980s, first steps were taken to liberalize and deregulate the Indian economy. In 1 June of 1991, an overly expansive fiscal and monetary policy induced a balance of payments crisis. The economy was stabilised and the authorities began to gradually liberalize the economy with structural reforms.