Contents

1. Introduction 177

2. Development Planning 177

2.1. Nature and Objectives of Planning 178

2.2. The Nehru-Mahalanobis Development Strategy 179

2.3. Agrarian Reconstruction 180

2.4. Role of the State 180

2.5. Analysis 180

3. Economic Crisis – 1960s 181

3.1. Shifts from Early Development Strategy 181

4. Economic Crisis – Early 1990s 181

5. Need for Economic Reforms 182

5.1. Weaknesses of the Pre-1991 Policies 182

5.2. Major Foreign Exchange Crisis 182

5.3. Conditionalities Imposed by IMF and World Bank 183

5.4. Fall of USSR (Union of Soviet Socialist Republics) 183

6. Economic Reforms 183

6.1. Redefining the Role of the State 184

7. Liberalisation, Privatisation and Globalisation 185

7.1. Policy of Liberalisation of Indian Economy 185

7.1.1. Meaning of Liberalisation 185

7.1.2. Features of Liberalisation Policy 185

7.1.3. Significance of Liberalisation Policy 186

7.2. The Policy of Privatisation 186

7.2.1. Meaning and Rationale of Privatisation 186

7.2.2. Arguments Against Privatisation 188

7.2.3. Features of the Policy of Privatisation in India 188

7.3. Policy of Globalisation 190

7.3.1. Meaning of Globalisation 190

7.3.2. Effects of Globalisation 190

7.3.3. Globalisation of Indian Economy 191

7.3.4. Features of the Globalisation Policy 191

7.3.5. Effects of Globalisation on Indian Industry 192

8. Effect of Reforms on Indian Economy 193

9. Assessment of Reforms 194

10. Previous Years GS Mains Questions 195

11. Previous Years UPSC Mains Questions 201