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- Agricultural reforms: Farm laws (2020, repealed 2021); APMC reforms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