उदारीकरण, निजीकरण और वैश्वीकरण (LPG) सुधारों ने भारतीय अर्थव्यवस्था को रूपांतरित कर दिया है, परन्तु इसके लाभों का वितरण असमान रहा है।” इस कथन का समालोचनात्मक मूल्यांकन करें। (10 marks , 150 words)
Answer - The 1991 Liberalisation, Privatisation and Globalisation (LPG) reforms marked a watershed in India’s economic trajectory. Initiated in response to the Balance of Payments crisis, they dismantled the Licence-Permit Raj, reduced state control, encouraged private enterprise, and integrated India with the global economy. While these reforms accelerated growth, efficiency and competitiveness, their benefits have remained uneven across sectors, regions and social groups, raising concerns of jobless and exclusionary growth.
Transformation of the Indian economy
1) Accelerated economic growth
• GDP growth moved from the earlier (~3.5%) to around 6–7%+ in the post-reform era.
• India emerged as one of the fastest-growing major economies.
2) Expansion of services and competitiveness
• IT, telecom, finance, pharmaceuticals and BPO sectors witnessed rapid expansion.
• India became a major global player in software exports and knowledge services.
3) FDI and technology infusion
• Reforms attracted substantial foreign direct investment.
• Competition improved productivity, consumer choice and technological modernization.
4) Poverty reduction and rise of middle class
• Poverty ratios declined significantly over time.
• A large urban middle class emerged with rising consumption capacity.
Why the benefits remained uneven
1) Rising inequality
• Gains disproportionately accrued to urban skilled labour, corporates and capital-owning classes.
• Farmers, informal workers and low-skilled labour received limited benefits.
2) Regional divergence
• States like Maharashtra, Gujarat, Karnataka and Tamil Nadu surged ahead.
• BIMARU and agrarian states lagged due to weaker infrastructure and governance deficits.
3) Sectoral imbalance
• Services-led growth was not matched by labour-intensive manufacturing.
• This led to jobless growth, while agriculture remained relatively stagnant.
4) Informalisation of workforce
• Expansion of contract work, gig economy and casual labour increased employment insecurity.
• Social security coverage remained weak.
5) Social exclusion
• Benefits remained concentrated among the educated, urban and digitally connected classes.
• SCs, STs, women and rural populations faced structural barriers.
6) Exposure to global volatility
• Greater integration increased vulnerability to external shocks, such as the 2008 crisis and supply-chain disruptions.
Way forward
• Promote labour-intensive manufacturing through Make in India and PLI.
• Invest in education, skilling and health.
• Strengthen rural infrastructure and agri-value chains.
• Expand social security for informal workers.
• Ensure balanced regional development.
LPG reforms transformed India into a globally competitive economy, but the growth trajectory remained urban-centric, skill-biased and regionally uneven. The next generation of reforms must focus on inclusive, employment-rich and regionally balanced growth, ensuring that the gains of liberalisation reach the last mile and vulnerable sections.