Impact of Economic Reforms (LPG) on Governance

Quick-reference summary — for full depth, see our detailed UPSC notes.

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📖 Quick summary

Post-1991 LPG reforms shifted the state from direct controller (License Raj) to facilitator/regulator, giving rise to independent regulators like SEBI (1992), TRAI (1997), IRDAI (1999). This raised new governance challenges around regulatory independence and regional inequality.

This national-framework topic is identical for APPSC as it is for UPSC — for the full deep-dive with all the detail, follow the link above.

💡 Key Facts

Pre-1991: controller state; Post-1991: facilitator/regulator state.
SEBI/TRAI/IRDAI = key independent regulators created post-liberalisation.

🔖 60-Second Revision

LPG reforms changed not just the economy, but the state's own governing role.