IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-6p175-180.html
   My bibliography  Save this article

Impact of Liberalization, Privatization, and Globalization (LPG) on the Indian Economy

Author

Listed:
  • Dr. Mohammed Shahid

    (Associate professor in Economics, Government College Osian, Jodhpur, Rajasthan)

Abstract

The 1991 reforms centered around liberalization, privatization, and globalization (LPG) represented a major transformation for India, steering the nation away from a closed, state-dominated economic model toward a more open, market-driven, and internationally connected economy. This paper examines the multifaceted impact of LPG on India’s economic growth, foreign investment, industrial development, employment, income inequality, and social sectors like education and healthcare. While LPG spurred significant economic expansion, attracted foreign capital, and modernized industries, it also introduced challenges such as rising inequality, regional disparities, and exposure to global economic risks. Using empirical data and scholarly insights, this study evaluates the successes and limitations of LPG, offering recommendations for sustainable and inclusive growth. The findings highlight the need for policies that balance economic liberalization with social equity to ensure long-term prosperity.

Suggested Citation

  • Dr. Mohammed Shahid, 2025. "Impact of Liberalization, Privatization, and Globalization (LPG) on the Indian Economy," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 175-180, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:175-180
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-6/175-180.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/impact-of-liberalization-privatization-and-globalization-lpg-on-the-indian-economy/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Panagariya, Arvind, 2011. "India: The Emerging Giant," OUP Catalogue, Oxford University Press, number 9780199751563, Decembrie.
    2. Geeta Gandhi Kingdon, 2007. "The progress of school education in India," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(2), pages 168-195, Summer.
    3. Bhagwati, Jagdish, 1993. "India in Transition: Freeing the Economy," OUP Catalogue, Oxford University Press, number 9780198288473, Decembrie.
    4. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    5. T. N. Srinivasan & Suresh D. Tendulkar, 2003. "Reintegrating India with the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 98, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manmohan Agarwal & John Whalley, 2013. "The 1991 Reforms, Indian Economic Growth, and Social Progress," NBER Working Papers 19024, National Bureau of Economic Research, Inc.
    2. Laura Alfaro & Anusha Chari, 2009. "India Transformed? Insights from the Firm Level 1988-2005," Harvard Business School Working Papers 10-030, Harvard Business School.
    3. Prema-Chandra Athukorala, 2008. "Export Performance in the Reform Era: Has India Regained the Lost Ground?," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 6, pages 95-115, Palgrave Macmillan.
    4. Shruti Rajagopalan, 2015. "Incompatible institutions: socialism versus constitutionalism in India," Constitutional Political Economy, Springer, vol. 26(3), pages 328-355, September.
    5. Bhattacharjeean, Arnab & Majumdar, Sumit K., 2011. "How much does industry matter in an emerging market economy?," SIRE Discussion Papers 2011-51, Scottish Institute for Research in Economics (SIRE).
    6. Agarwal, Manmohan & Whalley, John, 2013. "The 1991 Reforms, Indian Economic Growth, and Social Progress," CAGE Online Working Paper Series 128, Competitive Advantage in the Global Economy (CAGE).
    7. Rajendra R. Vaidya, 2013. "India," Chapters, in: Hal Hill & Maria Socorro Gochoco-Bautista (ed.), Asia Rising, chapter 10, pages 285-312, Edward Elgar Publishing.
    8. Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
    9. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    10. Siddiqur Osmani, 2009. "Explaining Growth in South Asia," Chapters, in: Gary McMahon & Hadi Salehi Esfahani & Lyn Squire (ed.), Diversity in Economic Growth, chapter 3, Edward Elgar Publishing.
    11. Françoise Lemoine & Sophie Chauvin, 2005. "L’économie indienne : changements structurels et perspectives à long-terme," Working Papers 2005-04, CEPII research center.
    12. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
    13. Chakraborty, Shankha & Thompson, Jon C. & Yehoue, Etienne B., 2016. "The culture of entrepreneurship," Journal of Economic Theory, Elsevier, vol. 163(C), pages 288-317.
    14. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    15. Ashoka Mody & Anusha Nath & Michael Walton, 2010. "Sources of Corporate Profits in India - Business Dynamism or Advantages of Entrenchment?," CID Working Papers 212, Center for International Development at Harvard University.
    16. Prema‐chandra Athukorala, 2019. "Joining Global Production Networks: Experience and Prospects of India," Asian Economic Policy Review, Japan Center for Economic Research, vol. 14(1), pages 123-143, January.
    17. Singh, Nirvikar, 2008. "India’s Development Strategy: Accidents, Design and Replicability," MPRA Paper 12453, University Library of Munich, Germany.
    18. Sen Gupta, Abhijit & Hasan, Rana & Lamba, Sneha, 2014. "Growth, Structural Change, and Poverty Reduction: Evidence from India," MPRA Paper 55247, University Library of Munich, Germany.
    19. Kaushik Basu & Annemie Maertens, 2007. "The pattern and causes of economic growth in India," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(2), pages 143-167, Summer.
    20. Biru Paksha Paul, 2013. "Output Relationships in South Asia: Are Bangladesh and India Different from Neighbours?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 35-57, March.
    21. Albert Bollard & Peter Klenow & Gunjam Sharma, 2013. "India's Mysterious Manufacturing Miracle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 59-85, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:175-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.