CBSE Class 11 Economics – Liberalisation, Privatisation, and Globalisation (LPG) – An Appraisal

Chapter Overview

This chapter evaluates the economic reforms initiated in 1991, collectively known as Liberalisation, Privatisation, and Globalisation (LPG). These reforms marked a shift from a state-controlled economy to a market-driven one. The chapter explores the background of the 1991 crisis, the objectives and measures of economic reforms, and their outcomes and limitations.

Important Keywords

• Liberalisation: Removal of restrictions on businesses and trade to increase efficiency and competition.
• Privatisation: Transfer of ownership or management of enterprises from the public to the private sector.
• Globalisation: Integration of domestic economy with the global market through trade, investment, and technology.
• New Economic Policy (NEP): The set of economic reforms launched in 1991 to revive the Indian economy.
• FDI (Foreign Direct Investment): Investment from foreign entities into domestic businesses.
• Disinvestment: Selling government stakes in public sector enterprises.