What are the advantages of the economic reforms of 1991?

Reforms led to increased competition in the sectors like banking, leading to more customer choice and increased efficiency. It has also led to increased investment and growth of private players in these sectors.

What are the disadvantages of economic reforms?

ADVERTISEMENTS: Economic reforms were introduced by the Government of India in July 1991….Four main drawbacks of the reform process are:

• It increased disparities among states.
• It displaced people having little, if any marketable skills.
• It increased the incidence of poverty and inequality.

What are the negative impacts of globalization on Indian economy?

The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries.

What is economic advantage and disadvantage?

Command economy advantages include low levels of inequality and unemployment, and the common objective of replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

What are the advantages of New Economic Policy?

The thrust of the New Economic Policy has been towards creating a more competitive environment in the economy as a means to improving the productivity and efficiency of the system. This was to be achieved by removing the barriers to entry and the restrictions on the growth of firms.

What caused the 1991 reforms?

ECONOMIC REFORMS OF 1991 The immediate factor that triggered India’s economic reforms of 1991 was a severe balance of payments crisis that occurred in the same year. The rapid loss of reserves prompted the Indian government to initially tighten restrictions on the importation of goods. …

What was the outcome of the 1991 crisis?

Precipitated by the Gulf War, India’s oil import bill swelled, exports slumped, credit dried up, and investors took their money out. Large fiscal deficits, over time, had a spillover effect on the trade deficit culminating in an external payments crisis.

What are the arguments in Favour of economic reforms?

Q2) Arguments in favour of the New Economic Policy/Economic Reforms:

• Increase in the rate of Economic Growth – According to data, the growth of GDP increased post 1991.
• Increase in Unemployment – Though there was a growth in GDP but such growth failed to generate sufficient employment opportunities.

What are the disadvantages of New Economic Policy 1991?

Some of the major weaknesses of New Economic Policy are: Large dependence on foreign investment in several sectors of economy. The rate of Consumer Price Index (CPI) has increased over the years. Inadequate privatization due to strong resistance from labor unions.