Class 11 Economics - WEST-BENGAL
Liberalisation Privatisation and Globalisation
This chapter explores the major economic reforms introduced in India in 1991, commonly known as the LPG policy. West Bengal (WBBSE) Class 11 students will learn how India transitioned from a controlled, socialist-leaning economy to a market-driven, open economy. It covers Liberalisation (removal of state controls), Privatisation (transfer of ownership from public to private sector), and Globalisation (integration of 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 and regularly features in short-answer and essay-type questions.
Start Learning FreeKey Concepts
New Economic Policy (NEP) 1991
A set of economic reforms introduced by the Government of India to overcome the severe balance of payments crisis and structural rigidities of the economy.
Liberalisation
The process of freeing the economy from unnecessary government regulations, controls, and licensing requirements, particularly in industrial and financial sectors.
Privatisation
The shifting of ownership, management, and control of public sector enterprises (PSEs) to private sector entrepreneurs, often through disinvestment.
Globalisation
The integration of the domestic economy with the world economy through the removal of trade barriers, free flow of capital, technology, and labour across borders.
Outsourcing
A business practice where a company hires external organizations, often overseas, to perform regular business activities like IT services and customer support.
World Trade Organisation (WTO)
An international organization established in 1995 to promote free, fair, and predictable international trade by reducing tariffs and non-tariff barriers.
Important Formulas
Board Exam Info
In the West Bengal Council of Higher Secondary Education (WBBSE) Class 11 Economics exams, this chapter typically carries around 8 to 12 marks. Questions frequently include short-answer questions (SAQs) defining LPG, objective multiple-choice questions (MCQs), and long-answer questions (LAQs) discussing the need for 1991 reforms or the positive and negative impacts of globalisation.
Frequently Asked Questions
What were the main reasons behind the introduction of the 1991 economic reforms?
The primary reasons were a severe balance of payments crisis, mounting fiscal deficit, high inflation, depletion of foreign exchange reserves, and poor performance of public sector undertakings.
What is the difference between globalisation and liberalisation?
Liberalisation refers to the relaxation of internal government rules and controls on businesses within a country, whereas globalisation refers to opening up the domestic economy to interact and trade freely with the global economy.
What do you mean by outsourcing and why is India a preferred destination for it?
Outsourcing involves hiring external agencies for business tasks. India is a preferred destination due to the availability of cheap, skilled, and English-speaking IT professionals.
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