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An unprecedented balance of payments crisis emerged in early 1991 which led to the Liberalisation, Privatisation and Globalisation of the Indian economy. Examine its impact.

Topic: Post-independence consolidation and reorganization within the country.

2. An unprecedented balance of payments crisis emerged in early 1991 which led to the Liberalisation, Privatisation and Globalisation of the Indian economy. Examine its impact. (250 words)

Difficulty level: Moderate

Reference: India since Independence by Bipan Chandra.

Why the question:

The question is part of the static syllabus of General studies paper – 1 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question:

To write about the causes of LPG reforms and its impact.

Directive word:

Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction: 

Begin by giving context of BOP crisis of 1991.

Body:

First, write about the various factors that led to crisis of 1991.

Next, explain the Liberalisation, Privatisation and Globalisation of the India economy and what it meant.

Next, write about the impact of LPG reforms of 1991 – write both positives and negatives for the reforms.

Conclusion:

Suggest a way forward on how to do with negatives.