State the merits and demerits of lpg model in india 1991
Answers
After Independence in 1947 Indian government faced a major problem to develop economy and to solve the issues. Considering the issues pertaining at that time government decided to follow LPG Model. The Growth Economics conditions of India in that time were not very good. This was because it did not have proper resources for the development, not in terms of natural resources but in terms of financial and industrial development. At that time India needed the path of economics planning and for that used ‘Five Year Plan’ concept of which was taken from Russia and feet that it will provide a fast development like that of Russia, under the view of the socialistic pattern society. India had practiced a number of restrictions ever since the introduction of the first industrial policy resolution in 1948.
Merits;
A vibrant economy:
Indian economy has clearly enhanced a more active marketplace. The overall level of commercial enterprise has positively plucked up after the presentation of the administration of liberalization, and globalization.
A check on Inflation:
Owing to the higher course of authorities and assistance in the economics, there has been a control on the rate of inflation. Till 2007-08, it ranked within 4-5 percent which is not a severe threat to concern rate structure.
Demerits;
Neglect of agriculture:
The majority of GDP has actually been owing to the abundant growth of the manufacturing sector. In the wake of LPG management, the focus shifted from producing to management.
Urban concentration of growth process:
LPG systems have occurred in the application of the extension method in metropolitan cities.