{"id":1359,"date":"2026-08-09T19:11:47","date_gmt":"2026-08-09T13:41:47","guid":{"rendered":"https:\/\/forumias.com\/psir\/psir-pyq\/liberalisation-of-indian-economy-has-not-been-accompanied-with-upsc-psir-2020-2306\/"},"modified":"2026-08-12T21:24:16","modified_gmt":"2026-08-12T15:54:16","slug":"liberalisation-of-indian-economy-has-not-been-accompanied-with-upsc-psir-2020-2306","status":"publish","type":"psir_pyq","link":"https:\/\/forumias.com\/psir\/psir-pyq\/liberalisation-of-indian-economy-has-not-been-accompanied-with-upsc-psir-2020-2306\/","title":{"rendered":"\u2018Liberalisation of Indian economy has not been accompanied with adequate reforms. Comment."},"content":{"rendered":"<div class=\"pq-flow\">\n<div class=\"pq-flow-h\">Flow snapshot <em>\u2014 how the answer moves<\/em><\/div>\n<div class=\"pq-fb\">\n<div class=\"pq-pill p1\"><span>Intro routes<\/span><\/div>\n<div class=\"pq-ft\">\n<p class=\"pq-r\"><i class=\"pq-rt\">Route 1<\/i> 1991 ended License Raj <span class=\"pq-ar\">\u2192<\/span> opening confined to trade &amp; industry <span class=\"pq-ar\">\u2192<\/span> complementary reforms left undone<\/p>\n<p class=\"pq-r\"><i class=\"pq-rt\">Route 2<\/i> reform real but partial <span class=\"pq-ar\">\u2192<\/span> product markets opened, institutions &amp; factor markets untouched <span class=\"pq-ar\">\u2192<\/span> statement captures the gap<\/p>\n<\/div>\n<\/div>\n<div class=\"pq-fb\">\n<div class=\"pq-pill p2\"><span>Body flow<\/span><\/div>\n<div class=\"pq-ft\">\n<p>1991 changes real: delicensing, tariff cuts, financial liberalisation, FDI <span class=\"pq-ar\">\u2192<\/span> growth, reserves, IT\/telecom\/services <span class=\"pq-ar\">\u2192<\/span> <b class=\"pq-sc\">Ahluwalia<\/b>\u2019s defence <span class=\"pq-ar\">\u2192<\/span> but no matching reform in agriculture, labour, land, credit, social sector <span class=\"pq-ar\">\u2192<\/span> weak governance, slow courts, exposed regulators, bank bad loans <span class=\"pq-ar\">\u2192<\/span> jobless &amp; regionally uneven growth, vulnerable informal sector, cronyism in land\/resources\/PSUs <span class=\"pq-ar\">\u2192<\/span> <b class=\"pq-sc\">Acemoglu &amp; Robinson<\/b>: institutions decide long-run success <span class=\"pq-ar\">\u2192<\/span> middle-income-trap risk<\/p>\n<\/div>\n<\/div>\n<div class=\"pq-fb\">\n<div class=\"pq-pill p3\"><span>Counter-view<\/span><\/div>\n<div class=\"pq-ft\">\n<p>defenders\u2019 case (<b class=\"pq-sc\">Ahluwalia<\/b>): real growth + falling poverty vindicate 1991 <span class=\"pq-ar\">\u2192<\/span> set against incompleteness: gains stayed narrow because deeper reform never followed<\/p>\n<\/div>\n<\/div>\n<div class=\"pq-fb\">\n<div class=\"pq-pill p4\"><span>Conclusion routes<\/span><\/div>\n<div class=\"pq-ft\">\n<p class=\"pq-r\"><i class=\"pq-rt\">Route 1<\/i> statement holds <span class=\"pq-ar\">\u2192<\/span> reform partial, not misdirected <span class=\"pq-ar\">\u2192<\/span> unfinished agenda remains<\/p>\n<p class=\"pq-r\"><i class=\"pq-rt\">Route 2<\/i> <b class=\"pq-sc\">Ahluwalia<\/b>\u2019s agenda \u2014 factor markets, state capacity, human capital <span class=\"pq-ar\">\u2192<\/span> adequacy still pending<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"pyq_year":[41],"pyq_marks":[35],"pyq_topic":[64],"pyq_paper":[33],"class_list":["post-1359","psir_pyq","type-psir_pyq","status-publish","hentry","pyq_year-41","pyq_marks-15-marks","pyq_topic-planning-and-economic-development","pyq_paper-paper-1"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_pyq\/1359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_pyq"}],"about":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/types\/psir_pyq"}],"version-history":[{"count":4,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_pyq\/1359\/revisions"}],"predecessor-version":[{"id":4771,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/psir_pyq\/1359\/revisions\/4771"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/media?parent=1359"}],"wp:term":[{"taxonomy":"pyq_year","embeddable":true,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/pyq_year?post=1359"},{"taxonomy":"pyq_marks","embeddable":true,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/pyq_marks?post=1359"},{"taxonomy":"pyq_topic","embeddable":true,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/pyq_topic?post=1359"},{"taxonomy":"pyq_paper","embeddable":true,"href":"https:\/\/forumias.com\/psir\/wp-json\/wp\/v2\/pyq_paper?post=1359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}