Due to the impact of liberalization, poverty declined but inequalities increased. Critically analyse. – INSIGHTSIAS

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Topic: Effects of globalization on Indian society.

2. Due to the impact of liberalization, poverty declined but inequalities increased. Critically analyse. (250 words)

Difficulty level: Tough

Reference: Live Mint

Why the question:

As per the latest World Inequality Report, from 1950 to 1991, the income of the bottom 50% of Indians was largely around a fifth of the total income of the country. It started to come down after 1991, and in 2021, it stood at 13.1%.

Key Demand of the question:

To write about the impact of liberalisation on urban poverty and inequality in India.

Directive word: 

Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.

Structure of the answer:

Introduction: 

Begin by giving context of liberalisation and its impact on society of India.

Body:

First, bring its impact on poverty. Mention about the economic progress made because of liberalisation and how it helped in alleviate poverty. Cite statistic to substantiate your point.

Next, write about the trends of increasing inequalities in India and how liberalisation played a part in it. Give examples and statistics to substantiate your points.

Mention the impact of the above.

Conclusion:

Conclude by writing a way forward to effectively reduce inequalities in India.

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