Liberalisation, Privatisation And Globalisation : An Appraisal

Question 85
CBSEENEC11008912

Discuss economic reforms in India in the light of social justice and welfare.

Solution

In the light of social justice and welfare, economic reforms have resulted in the growth of GDP from 6.1 to 8% during 10th five year plan. It has also caused the growth of small scale industries. India is becoming pioneer producer in the field of engineering goods, telecommunication, readymade clothes etc. inflation has also been controlled. However, economic reforms have adversely affected the growth of agriculture sector. It has resulted in widening the inequalities among people, or states. Further, it has increased the income and quality of consumption of only high income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology and finance, entertainment, travel and hospitality services and real estate and rather than vital sectors such as agriculture and industry which provide employment and livelihood to millions of people in the country

Question 86
CBSEENEC11008913

Write down the negative effects (result) of New Economic Policy (Economic reforms or LPG-liberalisation, privatisation and globalisation).

Or

Describe three main criticism of New Economic Policy.

Solution

1. Growing Unemployment : Though the GDP growth rate has increased in the reform period, scholars point out that the reform led growth has not generated sufficient employment opportunities in the country. Employment opportunities have been created at the upper end of the scale. Technologists, management personnel, engineers and other high skilled personnel are in great demand. But employment opportunities at the lower end for unskilled personnel are missing. The poor unskilled labour forces continue to work in low-productivity jobs drawing low irregular wages.

2. Neglect of Agriculture : During the reform period agriculture sector has been neglected. The growth of agriculture sector has declined whereas the growth of service sector has gone up. During the last 16years (1990-91 to 2005-2006) of economic reforms, the rate of food-grains has been less than the rate of growth of population. Decline of the growth of agriculture sector implies a setback to the principal source of livelihood of masses in India. Indeed neglect of agriculture implies spread of poverty.

3. Growing Personal Disparities : Growth has come to be concentrated to a few areas and regions. They are experiencing unprecedented prosperity. But a large part of the country remains untouched by these. As a result personel, disparities are increasing.

4. Infrastructural inadequacies : Infrastructure facilities remained inadequate.

5. Wide-spread Poverty : Though the standard of living has improved with the growth rate, but still poverty is wide-spread in the country. About one-forth of the total population ie.about 260 million persons are not a position to earn even bare means of subsistence.

Question 87
CBSEENEC11008914

The table given below shows the GDP growth-rate at 1993-94 prices. Draw a line series based on the data given in the table and interpret the same.

Years

GDP Growth Rate (%)

Years

GDP Growth Rate (%)

1991–92

1.3

1997–98

4.8

1992–93

1.5

1998–99

6.5

1993–94

5.9

2000–2001

4.4

1994–95

7.5

2001–2002

5.8

1996–97

7.8

2002–2003

4.0

Solution
Question 88
CBSEENEC11008915

Differentiate between Tariff and Quota.

Solution

Differentiate between Tariff and Quota:

Tariff

Quota

1. Goods in unlimited quantity may be imported by making payment of import tariff.

2. The quantity of imported goods is determined by the demand and supply forces of the market under tariff.

3. Tariffs are comparatively less protective.

4. Under tariff the government gets the revenues directly.

5. Tariffs have adverse effect on inefficient foreign products.

6. Under tariff, the domestic products are protected against competition.

1. By quota, imports of goods is restricted after a cerain quantity.

2. The quantity of imported goods is determined by the Government under quota.

3. Import quotas are comparatively more protective.

4. Under quotas, the government's revenues increase indirectly.

5. Quotas affect both the efficient and inefficient foreign producers adversely.

6. Under quotas, domestic inefficient, producers are sought to protect by abolishing the competition.

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