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