liberalised economy permitting a much larger role to the private sector. The share of the public sector was to be reduced through a policy of disinvestment and closure of sick units. This created a sea change in the economic outlook of the country, particularly from the point of view of the consumers. It is not merely that the aspirations of the growing middle class for a better standard of living in terms of availability of goods and services have been met.
Even the lower income families could now buy such goods. On positive side, liberalisation has certainly made India a more attractive destination for foreign investment. State governments are keen to advertise that they are relaxing restrictions to improve the ease of doing business in their state. All this has created a general air of prosperity which is reflected in the growth statistics of the economy as a whole.
On the negative side, liberalisation and globalisation have resulted in a significant increase in income disparities between the top income groups and the lower income groups. The removal of ceilings on corporate salaries has widened the disparities between the salaried class of corporate executives and wage earners. The formal sector has very limited potential for additional employment and most of the new employment is generated in the informal sector, and disparities have also increased across these two sectors. However, neither the advocates of a free economy nor leftist economists are happy with Envisioning a New Socio-Economic Order There are positive and negative assessments of the performance of planning in India.
Achievements . The expansion of the economy . The significant growth in national and per capita income . Increase in industrial production .
Increased use of modern inputs in agriculture and increase in agricultural production . A more diversified economy.