⚡ Topic 06 of 6 · Chapter 09 · Quick Revision
Second Generation Reforms & Quick Revision
Labour reforms, land reforms, agricultural reforms, GST, IBC — second generation reforms and complete revision.
📋 Second Generation Reforms
First generation reforms (1991) focused on macroeconomic stabilisation and liberalisation. Second generation reforms focus on deeper structural changes:
- Labour reforms: Labour codes (2019-20) — simplified 44 labour laws into 4 codes
- Land reforms: Easier land acquisition for industry; LARR Act 2013
- Agricultural reforms: Farm laws (2020, repealed 2021); APMC reforms
- GST (2017): Unified indirect tax system
- IBC (2016): Insolvency and Bankruptcy Code — faster resolution of bad loans
- RERA (2016): Real Estate Regulatory Authority — protect home buyers
- Demonetisation (2016): Curb black money, promote digital payments
- DBT (Direct Benefit Transfer): Eliminate middlemen in welfare delivery
⭐ Ease of Doing Business: India improved its World Bank Ease of Doing Business ranking from 142nd (2014) to 63rd (2019) — a major achievement of second generation reforms.
✅ Complete Chapter 09 Revision Checklist
✅ 1991 crisis: Forex reserves fell to $1.2 billion (2 weeks of imports)
✅ India pledged 67 tonnes of gold; took $2.2 billion IMF loan
✅ PM: P.V. Narasimha Rao; Finance Minister: Dr. Manmohan Singh
✅ LPG reforms launched: July 1991
✅ LPG = Liberalisation + Privatisation + Globalisation
✅ Liberalisation: Industrial delicensing, MRTP reform, FDI liberalisation
✅ MRTP Act replaced by Competition Act 2002
✅ Import tariffs: ~87% (1990) → ~25% (2000)
✅ India joined WTO: 1995
✅ Air India privatised: January 2022 (sold to Tata Sons)
✅ GDP growth: ~3.5% (pre-1991) → ~6-7% (post-1991)
✅ Poverty: ~45% (1993) → ~12% (2019)
✅ Forex reserves: $1.2 billion (1991) → $600+ billion (2023)
✅ India = 5th largest economy (2023)
✅ IT exports: ~$200 billion/year
✅ Second gen reforms: GST (2017), IBC (2016), Labour codes (2019-20)
✅ Ease of Doing Business: 142nd (2014) → 63rd (2019)
✅ India pledged 67 tonnes of gold; took $2.2 billion IMF loan
✅ PM: P.V. Narasimha Rao; Finance Minister: Dr. Manmohan Singh
✅ LPG reforms launched: July 1991
✅ LPG = Liberalisation + Privatisation + Globalisation
✅ Liberalisation: Industrial delicensing, MRTP reform, FDI liberalisation
✅ MRTP Act replaced by Competition Act 2002
✅ Import tariffs: ~87% (1990) → ~25% (2000)
✅ India joined WTO: 1995
✅ Air India privatised: January 2022 (sold to Tata Sons)
✅ GDP growth: ~3.5% (pre-1991) → ~6-7% (post-1991)
✅ Poverty: ~45% (1993) → ~12% (2019)
✅ Forex reserves: $1.2 billion (1991) → $600+ billion (2023)
✅ India = 5th largest economy (2023)
✅ IT exports: ~$200 billion/year
✅ Second gen reforms: GST (2017), IBC (2016), Labour codes (2019-20)
✅ Ease of Doing Business: 142nd (2014) → 63rd (2019)