Explain the policy implications of widespread poverty and inequality in india
Answers
We hear various stories and experience of our parents from their childhood memories . " In our times, having a landline connection was a luxury, and if you had a television set you were the most famous person in your locality " , fast forward 30-35 years and now we are changing phones every few months. What made this rapid transformation possible in these 30 years, why do we feel like our previous generation lived on a completely different planet . It is because of the economic reforms implemented in 1991 by then finance minister Manmohan Singh under the leadership of P V Narsimha rao as prime minister. We didn't call for the reforms until it was the only way out. India was in a balance of payment crisis. Our foreign reserves were depleted and we could finance only three weeks of imports.
So what was the impact of this miracle of Manmohan Singh in the budget presented by him in 1991, India opened its gates for the world to come and invest in its economy. License raj was abolished and we simplified the norms and formalities for the private enterprises to do businesses in India. New industries were setup , this required labor and this created jobs. Service sector saw a tremendous growth after liberalization. Infosys founder Narayana Murthy said " It took him 3 years and 50 trips to New Delhi to import one computer from abroad" , today his company is providing jobs to lakhs of people . FDI started to flow in and we saw big MNC's started investing in India. Purchasing power of our middle -class shot up when compared to the era before 1991. Poverty has reduced due to rapid job creations after the reforms took place. In last few years we saw a surge in number of startups which enables young and budding entrepreneurs to realize their dreams. Many of these startups are working towards poverty alleviation by educating the poor people and working towards their benefits.
Hope so this may help you
-DJ KNG