CBSE BoardEnglish MediumSTD 12 CommerceEconomicsLiberalisation, Privatisation And Globalisation4 Marks
Question
Give arguments against the economic reforms in 1991.
✓
Answer
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.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.