Liberalisation, Privatisation and Globalisation
Class 11 · Economics
4 ideas in Class 11 Economics, explained in plain words, with games and quizzes to practise.
The 1991 Crisis
Part of: Crisis and Liberalisation
Gulf-war oil bills drained dollars; reserves covered barely a fortnight; deficits forced borrowing; IMF loans demanded reform pledges.
Why it matters. Crises trigger reform. Reserves measure safety.
Key words
- Balance of payments
- : Record of what a country earns from and pays to the world.
- Forex reserves
- : Foreign money stock held to pay for imports and loans.
- Fiscal deficit
- : Government spending beyond its own revenue in a year.
- IMF conditions
- : Emergency lending tied to promises of economic reform.
Try it in two minutes
- Track dollar outflows.
- Count reserve weeks.
- Link loans to reforms.
Try at home. Follow forex news.
Liberalisation Measures
Part of: Crisis and Liberalisation
Industrial licensing ended except few hazards; import quotas fell; rupee devalued; tax slabs rationalised; services opened to private players.
Why it matters. Open markets spur competition. Fewer permits speed business.
Key words
- Delicensing
- : Ending the need for government permission to start industry.
- Import quota
- : A cap on how much of a good may be imported.
- Rupee devaluation
- : Official lowering of the rupee against foreign money.
- Private entry
- : Allowing private firms into areas once reserved for the state.
Try it in two minutes
- Scrap most licences.
- Cut import walls.
- Invite private players.
Try at home. List licences a shop needs.
Privatisation and Disinvestment
Part of: Privatisation and Globalisation
Disinvestment sells state equity; strategic sales transfer control; Navratna grants autonomy; critics fear job and welfare losses.
Why it matters. Ownership shapes efficiency. Sales fund budgets.
Key words
- Disinvestment
- : Selling state equity in public firms to private hands.
- Strategic sale
- : Selling enough shares to hand control to a private buyer.
- Navratna status
- : Elite status granting strong firms freedom to invest.
- Autonomy
- : Freedom of managers to decide without ministry approval.
Try it in two minutes
- Sell minority stakes.
- Transfer control cases.
- Grant autonomy stars.
Try at home. Name a Navratna firm.
Globalisation and Appraisal
Part of: Privatisation and Globalisation
Tariff cuts and FDI open borders; outsourcing hires Indian skills; WTO sets trade rules; gains grow GDP while farms and workers face shocks.
Why it matters. Openness brings tech and risk. Rules shape fairness.
Key words
- Globalisation
- : Linking the economy with world markets for goods and capital.
- Outsourcing
- : Hiring Indian skills for work sent from abroad.
- WTO rules
- : Global rules for trade between member countries.
- Foreign investment
- : Capital from abroad invested in Indian production.
Try it in two minutes
- Cut trade walls.
- Host global work.
- Weigh winners, losers.
Try at home. Name an outsourced service.
What your child will practise
- Globalisation and Appraisal: Space Puzzle (Clue Puzzle)
- Globalisation and Appraisal: Space Quick Fire (Quick Fire)
- Liberalisation Measures: Ocean Puzzle (Clue Puzzle)
- Privatisation and Disinvestment: Desert Quest (Flip and Match)
- The 1991 Crisis: Candy Quick Fire (Quick Fire)
- Quiz: Globalisation and Appraisal (8 questions)
- Quiz: Liberalisation Measures (8 questions)
- Quiz: Privatisation and Disinvestment (8 questions)
- Quiz: The 1991 Crisis (8 questions)