Economic reforms had a negative impact on developmental and welfare activities in India by way of the following facts:

1. Export-oriented policy strategies adopted in agriculture sector led to shift from production for the domestic market towards production for the export market, with special focus on production of cash crops in place of foodgrains. This in turn led to shortage of foodgrains thereby pushing up the price of foodgrains. Certainly this strategy was against the principle of social justice, as the poor were hit hard and worst affected. It was also anti-welfare in nature.
2. Industrial growth also slowed down because on account of globalisation cheaper imports have substituted the demand for domestic goods. This in turn has adversely affected the local industries and employment opportunities in India.
3. The assets of PSU's have been undervalued and sold to the private sector, through the process of "Disinvestment" of PSU's. This resulted in an enormous loss to the government. Further the proceeds from disinvestment have been used to compensate the shortage of government revenue instead of being used for developing PSU's and building social infrastructure in the country, to boost up social justice and welfare.
4. Reform policies w.r.t tariff reduction have curtailed the scope for raising government's revenue through custom duties. To lure foreign investment, tax incentives provided to foreign investors further lowered the scope for raising tax revenues. Certainly this had a negative impact on the developmental and welfare activities in India.