For many years after its independence the Indian economy emphasized on central planning. In 1990 it starts its road towards market economy, which is responsible for robust economic growth and increase in the urban middle-class. However, wealth distribution remained a huge challenge, alongside poor infrastructure, bureaucracy, labor market rigidity and regulation of foreign investment. The quick expansion of domestic demand, increase in deficits, inflationary pressures and huge and growing population placed a serious threat to the government’s policies.