Question Q.11GS3GS3

The liberalization policies of 1991 significantly enhanced India's economic dynamism, but the evolving global and domestic landscape necessitates 'Reforms 2.0' for sustained economic development and prosperity. Comment.

Introduction

In amidst of Balance of Payment Crisis of 1991, liberalization in economy was adopted to do away with the problems of protectionism.

22 words

Main Body

Liberalization policy of 1991 enhanced economic dynamism: → More freedom to private sector ↳ Bring competitiveness increasing efficiency (overcome Hindu rate of growth) ↳ Better management technique ↳ Increased production hence export → Increased foreign Direct Investment → Do away with Licence Permit Raj (streamlined obtaining of license)

But for the current scenario of geopolitics, Reform 2.0 is needed be cause of: 1) Growth without employment: 3.4% in 2023-24 PLFs (Quote high) 2) Stagnation of manufacturing sector contribution only 14% to GDP (more than 25% in disqua) 3) Rising protectionism in world economy is China-USA trade war 4) Industrial Revolution 4.0 is focus on semiconductors needed

5Need of gender inclusivity is women represent only 28% in STEM jobs Policies needed for Reform 2.0: → Make in India 2.0 is to make manufacturing contribute to 25% ↳ Production linked incentives ↳ National logistic policy is to lessen cost of logistic from 21.0 NDP ↳ PM Gati Shakti (overseeing scheme and monitoring for National Infrastructure Pipeline, NLP) → Hence need is to reform manufacturing sector with special focus on MSME while keeping progress of service sector intact.

— ANKIT RAUSHANUPSC · AIR 255

186 words1 paragraphs

Conclusion

Hence need is to reform manufacturing sector with special focus on MSME while keeping progress of service sector intact.

19 words

Diagram

Flow chart showing policies needed for Reform 2.0 including Make in India initiatives

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Topper

ANKIT RAUSHANUPSC

AIR 2552025

Subject & Paper

GS3GS3

Topic

Economic Development

Liberalization

Taxation

Writing Stats

227

Total words

Paragraphs

analytical

Tone

Linked PYQ

How has the New Economic Policy (1991) affected the lifestyle and life -chances of New middle class in India?

20M2018How