How does ‘Disinvestment’ and ‘Fiscal policy’ turned out to be
drawbacks of LPG policy? Explain
Answers
Answer:
Explanation:
LPG reforms of 1991 is a strategic shift in Indian economy which changed the very Nature of Indian reality today. This topic forms the foundation for Indian Economy today. Having a fair idea about the change it brought in Indian economy and international events which lead to it is important for the Mains across disciplines.
Placing it in syllabus: Indian economy and LPG reforms
Static dimensions:
Nature of Indian economy in the pre reform era
Factors which led to 1991 economic reforms
International events associated with Indian reforms
Current dimensions:
Nature and scope of reforms
Outcome of the LPG reforms
Content:
Nature of Indian economy in the pre reform era:
Indian economic policy after independence was influenced by the colonial experience, which emphasised on industrialization under state monitoring, state intervention in labour and financial markets, a large public sector, business regulation, and central planning.