GS2 2016 Q13 12 marks 200 words LPG Reforms

UPSC Mains 2016 GS2 Q13 — LPG Reforms

Has the Indian governmental system responded adequately to the demands of Liberalization, Privatization and Globalization started in 1991 ? What can the government do to be responsive to this important change ? (Answer in 200 words)

Question Decoded — examiner's intent

Directive verbs
HasWhat can the government do
Scope keywords
Indian governmental systemresponded adequatelydemands of Liberalization, Privatization and Globalizationstarted in 1991responsive to this important change
Implicit sub-parts
  • Critical evaluation of state-led vs market-led institutional shifts post-1991.
  • Analysis of administrative and regulatory failures (e.g., regulatory capture, red tape) despite policy shifts.
  • Assessment of the shift from 'Government as a Provider' to 'Government as a Facilitator/Regulator'.
  • Actionable roadmap for 'Second Generation Reforms' involving bureaucratic and judicial agility.
Common pitfalls
  • Writing a generic essay on the benefits/impacts of LPG instead of focusing on the 'governmental system' response.
  • Ignoring the 'Privatization' aspect by failing to mention the slow progress of strategic disinvestment and PSU reforms.
  • Neglecting the regulatory dimension, such as the evolution and performance of bodies like SEBI, TRAI, and CCI.
  • Focusing only on economic indicators (GDP growth) while ignoring institutional responsiveness to social inequalities caused by LPG.
Dimensions required
Administrative (Bureaucratic mindset shift)Regulatory (Independent oversight bodies)Legislative (Ease of doing business laws)Federal (Role of State governments in global competition)Judicial (Contract enforcement and dispute resolution)
Marks allocation hint

Allocate 40% (80 words) to evaluating the past response, balancing successes in deregulation with failures in labor/land reforms. Dedicate 50% (100 words) to concrete, forward-looking measures like civil service reform and digital governance. Use the remaining 10% (20 words) for a concise intro/outro linking 1991 to the vision of 'Viksit Bharat'.

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