Q.15. What is Liberalization? How is it affecting the Indian social structure?

Liberalization refers to the process of reducing government restrictions and controls in an economy to encourage greater participation of private entities and foreign investment. It’s a part of economic reforms aimed at making the economy more market and service-oriented, and expanding the role of private and foreign investment.

Effects on Indian Social Structure:

1. Economic Disparities: Liberalization has led to rapid economic growth in certain sectors, particularly services, resulting in increased disparities between different social classes and regions.
2. Urbanization: The growth of service industries in urban areas has accelerated migration from rural to urban regions, leading to urban sprawl and associated social issues.
3. Cultural Shift: Exposure to global markets and cultures has brought about significant changes in lifestyle and consumer behaviour, leading to a blend of traditional and western values.
4. Employment Patterns: There has been a shift from agricultural and manufacturing employment to services and IT sectors, affecting the social fabric, especially in terms of job security and labour welfare.
5. Education and Health: Liberalization has improved access to education and healthcare, but also led to the commercialization of these sectors, impacting their affordability and quality.

In summary, liberalization has had a profound impact on the Indian social structure, bringing both opportunities and challenges that continue to shape the country’s socio-economic landscape.