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16 Oct 2016 | Target Mains: Weekly Essay Challenge

  • 25 Years since 1991 Economic Reforms: How has India changed and where is India heading?

    (Its relevance – 2016 marks the 25th anniversary of economic liberalization in India)

    Instructions: Write the following essay in 1000-1200 words.

    (This essay topic was suggested by @pablo-escobar, those interested can give suggestions here –

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  •  Avinash Y @avinash-yadav

    in jpeg format :

  •  Avinash Y @avinash-yadav

    Please review

    •  Civils temp @civils-temp


      Well written essay…Nothing much to advice…just keep it up..
      Please upload better quality image or pdf..

  •  Ashutosh Namdeo @ashutosh-namdeo

    25 Years since 1991 Economic Reforms: How has India changed and where is India heading?

    The very air of India was blowing with apprehension when the then Prime Minister Narsimha Rao was charting out strategy of liberalization, privatisation and globalisation with the then finance minister, Mammogram Singh. It was an act of courage to make the radical move. But India’s entry into the Brave New World was not its choice rather to some extent a necessity.

    What were the circumstances which led us to shoo away our reservation??
    India was an agrarian economy then, too susceptible to vagaries of monsoon. Our manufacturing and industry sector was mainly at the behest of government and private sector even if allowed was liable to work under myriad regulations. Competition in market was minimal. Added to this was the negative proactiveness shown by our bureaucracy. As a result, the market sank under its own weight leading to unacceptable growth rates. We had to resort to borrowing many times when ultimately the burden of debt led to the infamous balance of payment crisis of 1991.It must be noted that many others factors colluded to precipitate this crisis though economic factors stood out amongst them. Bretton woods institutions came at our rescue but with their own package.
    We began our journey on this alien road amidst cynical anticipations. 25 years hence as we look back we realise that it was an eventful one.
    Today India stands as a ‘shining star’ in international economy being the third largest economy in PPP terms. We have our behest the ingenious combination of 3D’s–Democracy, Demography and Demand to lure in the investors. With a lot to achieve and with a lot already achieved we continue our journey.
    What have we gained in these 25 years??
    We began with few means to fulfil our meagre needs and now we have many needs and equally convincing means. From a sub 3 percent growth rate we have made a quantum leap to 7-8 percent. From a balance of payment crisis to a foreign exchange reserve of 300bn dollars and a Fiscal Deficit within desirable range. A global leader in service sector, aspirational in manufacturing sector and an ever green agricultural sector. Cohabitation of public and private sector has been able to put up decent challenge to incoming international players and also in international market. Almost all major indian MNC has stakes abroad and we harbour many international MNCs in our territory. Connections with the outside world brought new employment opportunities. We stand as a vanguard of developing world at all major global economic engagements. We have world’s second largest telecom network which has almost reached to the remotest corner. The enigma of ‘petromax’ which perplexed the rural masses two decades ago has lost its sheen and perhaps the new ones don’t even know it, we have sent electricity to every corner. Macadamised roads connecting every part of country are heavy with traffic flying 24hrs. Metropolitan cities no longer remain the sole growth poles of our economy. Global best strategies social sector have led to huge improvements in education, health and service delivery.
    Vice men say economics and politics are blood relatives. So is true in our case. As we began to show promising traits of economic power, our geopolitical stature began to rise, regionally and globally. Regionally India today stands at a much advantageous positions with congenial relations with almost every country. Globally we have become must sort after so much so the we have a strong backing at UNGA to be a permanent member of UNSC. We have made otherwise impossible civil nuclear deals, we are at the helm of becoming a member of NSG, all this given the fact that we are a non signatory of NPT. We now maintain a balanced relation with major global powers.
    Looking at the benchmark of 1991, we can say that our society too has under went changes. The remarkable exchange of almost everything has happened post this period. Though the core of our culture has remained intact, its periphery has underwent a huge metamorphosis. Notions of caste and colours have faded if not erased. Youth of nation sport a liberal opinion on major social issues. Festivities are no longer about the old intangible tradeoffs of love and joy rather along with these we have added considerable material extravagance to them. In many areas we can witness an ingenious mix of culture. We don’t get surprised when we hear ‘cheese dosa’ or ‘paneer burger’, we prefer a jeans with kurta rather than dhoti, we prefer a fusion of classical and western music, hinglish phrases are vogue in daily conversation etc.

    Where we have fell short??
    It must be remembered that these positive changes have not come without a cost.
    Economically, post this period, rural and cottage industries have suffered a severe setback, coupled with this was disillusionment of workers employed in them and many social problems followed. Competition though beneficial to the consumers have proved inimical for the workers. With thin margins companies have compromised with their working conditions. Some workers who failed to catch pace with changing technology lost their jobs. Employment in private sector to a large extent became the dominating ground of english speaking people. Connections with outside world had its own perils which we particularly experienced during economic crisis of 2008, many in service sector lost their jobs. Also banking policies have become dependent on what is the stance of central bank of major economies. Despite all protectionist measures our market are frequently flooded with cheap foreign product, jeopardising domestic industries. Special mention must be made of agricultural sector which has failed to keep pace with global standard especially small farmers. Also Indian experience with global patent regime has not been very sweet, particularly due to our low status in R&D.
    Opening up of economy led to beginning of frantic exploitation of natural resources by private sector, the burns of which was felt by tribal society, many were evicted and not properly rehabilitated. In many cases tribal knowledge was commercially exploited without their knowledge or reciprocation in form of royalty. Urban way of life saw even more increase in anonymity amidst its populace as everyone got more busy. Cut throat competition in work life began reflecting in personal life. Many undesirable social phenomena like domestic violence, extramarital affairs have risen. This is coupled with health problems in face of constant anxiety. Families have increasingly became nuclear with children often left at mercy of house maid with both parent venturing to work . Working children, who often work abroad have little time to spare for their elderly parent who are left to live a desolate life.
    Social pressure of reciprocation have reduced the homogeneity in celebration of festivities.
    Demand for packaged food has increased especially in urban areas which has led to many health problems. Childrens likeliness to junk food has led to problem of obesity.

    Where are we heading??
    There is no certainty as to when we began our journey to greatness but one this is sure that 1991 was a landmark event in our journey. It would be very naive to deduce that post 1991 India was the sole outcome of what happened then but it would be an equal travesty to deny the rapidity of events since then. In 1930 we made a tryst with our political destiny which was fulfilled in 1947, in 1991 we made a tryst with our economic destiny but perhaps we will not fulfill it together at the same time, many already have, many are yet to but policy makers must not rest assure until each one of us realises theirs.

    •  Aayush Kumar @mailaayushkr

      @ Ashutosh Namdeo

      Your choice of words and vocabulary was appreciable, infact awesome.I thought as if I am going through The Hindu editorial. You have supported most of your statements with the facts. 🙂

      But what I felt after going through your essay is that the repercussions of the 1991 reforms that you tried to show was not properly connected. Building of roads, electricity, or ingenious mixing of culture are obviously the impacts of above reforms but in the essay this is indicated in very subtle way.

      I felt that the implications you described was cumulative effect of various other reforms also. Those were not directly connected with the 1991 reforms.

      Please have a look on my essay and review it. Tell me about the corrections you feel in it 🙂

    •  Ashutosh Namdeo @ashutosh-namdeo

      @mailaayushkr..thanks for the review …I agree that I could not clearly draw the line as to how much of what happened post 1991 was due to event that took in 1991..and that was the predicament I was trying to explain in conclusion…also I felt that line can be drawn more starkly when we consider cultural and geo-political implication in comparison to economic…
      And please don’t notice the language too much as I never kept the clock while I was writing, probably I had alot of time to pick and chose my words…thanks again…keep writing and keep review

  •  Aayush Kumar @mailaayushkr

    25 Years since 1991 Economic Reforms: How has India changed and where is India heading?

    In the year 1991, India, the country, which was until now, being developed under the protection of government with restricted business norms, was all set to face the whole world. This was the time when the outcomes of the Green Revolutions and the Five year plans started to appear on the considerable amount.

    And hence, the Indian economy went through the great economic reforms which is also called as Liberalization of Indian Economy.
    The various elements and mandate of these reforms were drafted by Mr. Manmohan Singh, the Finance Minister in those years.

    Implications of the economic reforms:
    As happens in case of every decision or reforms, the liberalization’s outcomes, were both positive as well as negative. Some sections of society were benefited whereas some took time to adjust and perform in the newly created economic environment. Following are the various affects and implications of the 1991 Economic reforms:

    Positive Outcomes:

    1. Growing Indian Economy: The effect was overall positive on the broader picture. Spurt in GDP growth and enhanced per capita income testimonies this fact. After the liberalization, the export and import boosted up all these added up to give the shooting growth chart.

    2. Increased Job opportunities: With the economic reforms of liberalization in place, the growing India was a good destination where foreign companies could invest on and the top businessmen of ours were also looking out of India for the subsequent expansion of there business. So this lead to creation of jobs in various sectors and the increased employment.

    3. Increased money flow and Banking Sector growth: With the liberalization, the Balance of Payment crisis was gradually being diminished and increasing money flow inside the country lead to the direct benefit to the banks. The Banks financed the expansion of the business and helped budding entrepreneur to establish the startups.

    4.Indirect benefits to auxiliary sectors: Sectors like Medical, Education,etc were also the one who were benefited by this reform regime as the increased investment scenario lead to the subsequent development in these sectors. The development in these sectors not only lead to boost job opportunities but also helped in the general upliftment of the middle class strata as more number of individuals could give eduction, health care facilities to themselves and there dependents.

    5. Enhanced Research and Development: Due to the funding in various educational and research institutes and improvised infrastructure, the Research and Development ( R&D) sector witnessed appreciable growth. New machines and technologies led to foster the research fields.

    5. Increased defence capacity: The reform had also a great impact on the defence part as the India was now able to do various Transfer of technology (TOT) deals and procurement of various defence weapons and artillery. Also the increased research and development lead to further enhancement of our Fighting caliber.

    6. Starting of New Relations on Strategic and Geo-political front: When the Indian Economy liberalization process started to roll, it also lead to various bilateral and multilateral talks between India and outer World. The Various bilateral deals with Russia, U.S, China, etc testimonies the statement. We witness increased frequency of talks from the period of 1991 which lead to deals various TOT deals and business.

    7. Trade growth:All these factors cumulatively lead to the increased growth in import and export in almost every field. Following the reduced restrictions, there has been a spurt growth in the trade relations between India and outer world.

    8.Increased standard of living: When the people have jobs in their hands, the health and care facilities are there, the education system is efficient, then the ultimate result is the increased standard of living. All these factors lead to upliftment of the general population which can be advocated by the shift of considerable number of people from below the poverty lines status to above the poverty line.

    Negative Impacts:

    All the above points clearly showed that the Reformation and the liberalization is a boon to the country’s development and growth. Yes, it is true. But there are some fields and sectors which requires additional support and supervision so that they could also be benefited in the same tunes. Following are some of the negative implication:

    1. Small Domestic manufacturers found it hard to survive: With the market suddenly unprotected and the advent of cheaper items from the foreign source, the domestic manufacture sometimes found it very difficult to survive. So, they faced hardship in initial years and some of them event changed the business or joined a job.

    2. Increased prices due to export: When the international boundaries opened up, the trade of items to foreign led to scarcity in our local markets and mandis. The result was increased prices.

    3. Corruption: The liberalization also gave the administrators and bureaucrats class roles of granting licenses and permissions to the companies and items. Due to the not so efficient supervisory system in place, some of them got involved in the corruption practices. This led to trouble for general public.

    4. Black Money: The liberalization authenticated the foreign accounts and transfers. The belligerent politicians, businessmen and other individuals found the way to escape the income tax department ambit. The used this environment as a way to stash there unaccounted income to foreign banks and the problem of black money initiated.

    The way ahead:

    So from the above we can see that even there were some negative outcomes, the overall picture is good and positive. We can see it ourselves that even in the unstable economic scenario in world wide, India’s growth has been continuous and appreciable too. The GDP growth of 9.1% and the advent of various economic reforms like FDI, etc has further helped in this step. The Ease of Business environment that the government is trying to provide to the foreign and domestic investors will result in the stronger India be it in Economic, Strategical, or in the overall population happiness.

    But the problems like corruption, delayed implementation and executions of plans, unaccountability of failures, and tensed internal situations like strikes, curfews etc effects a lot in the development goals we have in our vision. If more reforms as that of 1991 in coherence to the present scenario is implemented on with the proper encounter of the prevalent menace, we will definitely make this India a Golden bird.


    •  Ashutosh Namdeo @ashutosh-namdeo

      @mailaayushkr..I enjoyed reading your essay, language was good, it was properly structured and first part of essay was comprehensive i.e. positive impact part…despite all the goods I thought you missed out on following points—
      a)positive impacts if substituted by examples would have made this part even more complete, especially point 4 where I felt eg was needed to better explain this point
      b)I thought in negative impacts you could have added few more points
      –2008 crisis and it implications
      –negetive implications of WTO regime
      Eg farm subsidies, IP issues etc..
      –impact on our culture not mentioned
      Eg increased pace of life, work
      Pressure, family structure etc..
      –black money point was good one..
      But overall it was a good attempt

    •  Aayush Kumar @mailaayushkr

      @ Ashutosh Namdeo

      Thanks for the review. I will surely implement the suggestions you gave. Need to study in much more detail.

  •  Juhi Singh @juhisingh

    Pls review guys.

    1. New-Doc-82.pdf
    •  Civils temp @civils-temp

      You have good content for the essay..but took GS approach to your essay..
      It’s better if you can go through some good essays like that of Avinash…
      Wish you good luck…

    •  Albashi Shaikh @albashis

      1s essay beginner

This topic contains 12 replies, has 7 voices, and was last updated by  Civils temp 1 year, 7 months ago.

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