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Assess India’s 1991 liberalisation reforms and the lessons it offers in contemporary times.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

4. Assess India’s 1991 liberalisation reforms and the lessons it offers in contemporary times. (250 words)

Reference:  The Hindu

Why the question:

In light of the historic economic contraction of the Indian economy induced by the COVID-19 pandemic and calls for economic reforms to revive growth, the article discusses the 1991 economic reforms and the road ahead for India.

Key Demand of the question:

Evaluate India’s 1991 liberalisation reforms and the lessons it offers in contemporary times.

Directive:

AssessWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Start with brief background of the question.

Body:

Talk first about the pre-reform era. The Indian economy before the 1991 reforms was based on strict regulation and could be characterized as a controlled system. The public sector accounted for a significant proportion of the economy with the so-called critical sectors reserved for the public sector despite their lackluster performance.

Then move on to discuss 1991 Economic Reforms.

Highlight the pros and cons of these reforms.

Explain in what way they are relevant even in today’s times.

Conclusion:

Conclude with way forward.