Impact of 1991's liberalizations on economy-A Puppet Show (1)

Since independence India preferred a closed economy which is more like having a government control over all the facets of economy. India at this time grew within; in all facets of economy purchasing discrepancy was not visible and each one was having it's share in the Indian economy as the reports says.

After 1980's the pressure of globalization was felt first time as the discrepancy was widening where the world was heading and where India was heading towards. One point where the world was heading towards modernization, technology and market driven economy India was growing at a slower pace incorporating all in the economy. Rajiv Gandhi first felt the need of opening the sectors for foreign investments and preferred a market driven economy where technology & science can play a major role.

In the year 1991 current Prime Minister P. V. Narasimha Rao and his finance minister  Manmohan Singh initiated the liberalization in India to make balance of payments viable. Specific changes included a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment.

So in a broader sense it was more like making Indian economy viable on the line of foreign economies and preferring the norms of foreign investments to make India a global economy. 

Few of the effects of Liberalization:

it increased the buying disparity among poor and rich.
It created a competition among the middle income group and higher income group.
It increased market hold on economy and pushed India to be the biggest consumer market in the world.  
It benefited education in the line of similarity of having same sorts of course for all excluding majors,likability and understanding of students. 
It sold out major proponent of Indian economy to investors to decide what should be sold in India and in what directions India should go ahead. 
It brought poverty to the highest level and market marginalized the agriculture.

Moreover India sold it's stake to be a globalized economy in the hands of investors now who have the full rights to monitor in which direction India should go ahead.