Question

Economic liberalisation in the 1990s profited contractors and private investors, but intensified the crises for farmers. Elaborate in context of the Telangana state.

Answer 1

Instructions:

• Impact of Liberalisation: ​How it impacted different sectors of the economy​ in Telangana.
• Losses and unemployment in agriculture:​ How it led to distress in the farming sector.
• Impact on the private sector:​ How the private sector was impacted and the response of the masses to the situation.

Solution: ​

• Economic liberalisation in the 1990s profited the private investors and contractors, but intensified the crises for farmers, artisans, and traditional service providers.
• The farmers faced a huge inflation in the prices of raw materials and added competition from imported agricultural goods.
• Depletion in groundwater in Telangana resulted in a crisis for farmers. There was an increase in farmer suicides in the region. Distressed farmers also started selling their lands to outsiders in the state.
• At the time, the government was also trying to reduce its expenditure, and therefore, curtailed recruitments.
• The private sector grew and expanded. However, unemployment and insecure employment still remained.
• Each segment of the population felt betrayed due to these developments and, thus, formed various organisations and movements around their demands.