Class 12 Economics - ODISHA
Liberalisation Privatisation and Globalisation
This chapter explores the major economic reforms introduced in India in 1991, known as the New Economic Policy (NEP). It covers the three core pillars: Liberalisation, which removed unnecessary controls and restrictions on businesses; Privatisation, which transferred public sector enterprises to private hands; and Globalisation, which integrated the Indian economy with the world economy through trade and investment. For Odisha (BSE) Class 12 students, this chapter is crucial as it forms the foundation of modern Indian economic history, carrying significant weight in board exams through both short-answer and long-essay 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.
Liberalisation
The loosening of government regulations and control over private sector enterprises, promoting a more market-oriented economy.
Privatisation
The process of involving the private sector in ownership or management of state-owned public sector enterprises (PSEs).
Globalisation
The integration of the domestic economy with the world economy through free trade, capital movement, and cross-border technology transfer.
Outsourcing
A business practice where a company hires external organizations, often abroad, to perform services like IT support and customer care.
World Trade Organisation (WTO)
An international organization established in 1995 to regulate international trade and promote free and fair global trade rules.
Important Formulas
Board Exam Info
This chapter generally carries around 8 to 12 marks in the Odisha (BSE) Class 12 Economics board exam. Students can expect objective type questions (MCQs/fill-in-the-blanks), 2-mark short notes on terms like outsourcing or WTO, and 6-mark long-answer questions explaining the necessity and impact of the 1991 economic reforms.
Frequently Asked Questions
What were the main reasons for the introduction of LPG policies in 1991?
India faced a severe balance of payments crisis, high inflation, depleting foreign exchange reserves, poor performance of public sector units, and a massive fiscal deficit.
What is the difference between globalisation and privatisation?
Privatisation involves transferring ownership of public sector undertakings to private individuals, whereas globalisation refers to opening up the domestic economy to global trade and investment.
Why is India considered a favored destination for outsourcing?
India has a large pool of skilled, English-speaking talent available at relatively low wage rates, making it ideal for IT and business process outsourcing (BPO).
Learn Liberalisation Privatisation and Globalisation with Your AI Tutor
10 different ways to study this chapter. Free for 3 chapters per day.
Lecture
Key Points
Interactive
Quiz
Flashcards