Class 11 Economics - HARYANA
Liberalisation Privatisation and Globalisation
This chapter explores the New Economic Policy (NEP) introduced by the Government of India in 1991 to overcome a severe economic crisis. Haryana (BSEH) Class 11 students will learn about the three core pillars: Liberalisation (removing unnecessary controls), Privatisation (transferring ownership to the private sector), and Globalisation (integrating the national economy with the world economy). Understanding these reforms is crucial for board exams as it forms the foundation of modern Indian economic development, explaining how India transitioned from a regulated economy to a market-driven one, frequently appearing in both short and long answer questions.
Start Learning FreeKey Concepts
New Economic Policy (NEP) 1991
A set of economic reforms introduced in July 1991 aimed at stabilizing the economy and initiating structural transformation towards rapid economic growth.
Liberalisation
The process of releasing the economy from state-imposed restrictions, including the abolition of industrial licensing and reduction of import tariffs.
Privatisation
The transfer of ownership, management, and control of public sector enterprises (PSUs) to private entrepreneurs, often achieved through disinvestment.
Globalisation
The integration of the domestic economy with the world economy through the free flow of goods, services, capital, technology, and labor across borders.
Outsourcing
A business process where a company hires regular service providers from outside, often abroad (like India), to perform business functions such as IT and customer support.
World Trade Organisation (WTO)
An international organization established in 1995 (replacing GATT) to promote free international trade and resolve trade disputes among member nations.
Important Formulas
Board Exam Info
In the Haryana Board (BSEH) Class 11 Economics examination, this chapter usually carries around 6 to 8 marks. Questions frequently include very short answer questions (1 mark), short answer questions (3-4 marks) on the objectives or differences between the LPG policies, and long essay-type questions (6 marks) evaluating the merits and demerits of globalisation or reasons for the 1991 economic crisis.
Frequently Asked Questions
Why were economic reforms introduced in India in 1991?
India faced a severe balance of payments crisis, depleting foreign exchange reserves, high inflation, and huge fiscal deficits, forcing the government to seek help from the IMF and World Bank under the condition of structural reforms.
What is the difference between outsourcing and offshoring?
Outsourcing means hiring an external agency to do work that was earlier done internally. Offshoring is specifically when this outsourced work is performed in another country where costs are lower, such as IT services in India.
Is globalisation beneficial for developing countries like India?
Globalisation has benefits like increased foreign investment, technological advancement, and a wider variety of goods, but it also has drawbacks such as severe competition for domestic small-scale industries and agricultural distress.
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