Give arguments against the economic reforms in 1991.
Download our app for free and get started
The new economic reforms have been criticised on various grounds:
- The biggest consequence of the new free market policies is acute "inequality". The new reforms have increased the incomes of only high income groups and the poor have been left out of the benefits of the reforms.
- There is a great deal of variation in economic growth among the Indian states and between states and between the rural and urban areas. The growth has been concentrated only in some selective areas in the service sector such as telecommunication, entertainment, finance, travel and hospitality services, real estate and trade.
- The information technology sector which has benefited most from the reforms employs fewer than one million people. Job creation in the urban technology sector does little to create economic gains for India's rural poor.
- For India's rich farmers, trade liberalisation has been a blessing. But the agriculture sector itself is in crisis. The production of some of the staple items had declined as agricultural land is used for production of export crops.
- Liberalisation has forced the small farmers to compete in a global market where prices of agricultural goods have fallen. Reduction of government subsidies has made farming more expensive.
- Without public investment in roads and irrigation, rural areas are unable to invite massive private participation in its development.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionDo you think only loss making companies should be privatised? Why?
- 2View SolutionWhat are the benefits of globalisation?
- 3View SolutionWhat do you understand by GST? How good is a system of GST as compared to the old tax system? State its categories.
- 4View SolutionWhat are the major factors responsible for the high growth of service sector?
- 5View SolutionDeepak argues that in the era of privatisation, there is no need for government intervention in education and health sectors. However, his friend Raju argues that education and health care services create social benefits and therefore there is a need for government intervention in education and health sectors. Decide with reasons, who is right?
- 6View SolutionWhy is it necessary to became a member of WTO?
- 7View SolutionCritically appraise the fiscal reforms initiated under NEP of 1991.
- 8View SolutionThe objective of new economic policy was privatisation. Discuss.OR
What measures were taken towards privatisation in 1991? - 9View SolutionWhat was Navratna Policy? Make a list of companies included in Navratnas.
- 10View SolutionWrite a brief note on International Bank for Reconstruction and Development (IBRD).