🔄 Chapter 09 · Indian Economy · Development & Reforms

Economic Reforms — LPG (1991)

Liberalisation, Privatisation, Globalisation; balance of payments crisis; Narasimha Rao reforms — complete notes for UPSC & PSC exams.

📅 UPSC Prelims📋 APPSC Group 1 & 2📋 TGPSC Group 1 & 2⏱️ ~55 min read🎯 Very High Weightage

Sub-Topics

Practice MCQs

PYQs

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✅ 1991 Balance of Payments crisis

✅ Liberalisation — what changed

✅ Privatisation — disinvestment

✅ Globalisation — India’s integration

✅ Narasimha Rao & Manmohan Singh reforms

✅ Licence Raj — what it was

✅ Second generation reforms

✅ Impact of LPG reforms on India

UPSC Prelims (2–3 Qs/year)APPSC Group 1 & 2TGPSC Group 1 & 2SSC CGL / CHSLState PSC Exams

📚 Chapter Sub-Topics — Click to Read

Topic 01

1991 Crisis — Why India Needed Reforms

Balance of payments crisis, gold pledge, IMF loan, Licence Raj problems, and why India had no choice but to reform.

Topic 02

Liberalisation — Dismantling the Licence Raj

Industrial delicensing, MRTP Act abolition, FDI liberalisation, trade liberalisation, and deregulation of economy.

Topic 03

Privatisation — Disinvestment & PSU Reforms

Disinvestment policy, strategic sale, Air India privatisation, and the debate around privatisation of PSUs.

Topic 04

Globalisation — India’s Integration with World Economy

Trade liberalisation, WTO membership, FDI inflows, outsourcing boom, and India’s rise as a global economy.

Topic 05

Impact of LPG Reforms — Achievements & Criticism

GDP growth, poverty reduction, IT boom, rising inequality, jobless growth — balanced assessment of 1991 reforms.

Topic 06

Second Generation Reforms & Quick Revision

Labour reforms, land reforms, agricultural reforms, GST, IBC — second generation reforms and complete revision.

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