Class 11 Economics - Chapter 3: Liberalisation, Privatisation and Globalisation – An Appraisal
Understand the 1991 economic reforms in Class 11 Economics Chapter 3. Explore the effects of Liberalisation, Privatisation, and Globalisation on the Indian economy.
Overview
This chapter analyzes the economic reforms introduced in 1991 in response to a financial crisis. It explains the key components of Liberalisation, Privatisation, and Globalisation (LPG), and evaluates their impact on India’s economic growth and inequality.
Why This Chapter Matters
The LPG reforms marked a shift in India’s economic policy. Understanding these reforms helps students analyze India’s transition from a controlled to a market-driven economy and the pros and cons of globalization.
Real-Life Applications
- Explaining the reasons behind the 1991 economic crisis and reforms.
- Understanding how liberalisation removed barriers in trade and investment.
- Evaluating the effects of privatisation on public sector enterprises.
- Assessing the impact of globalisation on employment, inequality, and development.
Skills You Will Learn
- Critically analyzing economic policy reforms.
- Interpreting trends in FDI, exports, and disinvestment.
- Identifying winners and losers in a globalised Indian economy.
Explore and Test Your Knowledge
Practice Test
Test your knowledge with our practice test.
Scheduled Talent Test
Participate in the weekly talent test for this chapter.
Flashcards
A: They were introduced in response to a severe balance of payments crisis and aimed to make the Indian economy more efficient and globally competitive.
A: Liberalisation refers to removing trade and investment restrictions to encourage competition and economic growth.
A: It increases foreign trade and investment but also leads to challenges like job insecurity, inequality, and cultural homogenization.
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