Liberalisation of the Indian economy since 1991 has led to excessive consumerism and over-production of ‘white goods’. Elucidate.
At the end of the first phase of economic liberalisation 1991-2001, the result is economic growth and better availability of goods and services to consumers of India. The review of the phase shows that economic growth has been achieved and employment are also generated but it has resulted into increased spending capacity.
Demand is high and level of production is also high. Excess spending capacity has led to consumerism in India. Sell of luxury goods has increased. Markets are full with white goods, that is goods for the higher class of society, by multi-national companies.
White goods i.e. electrical consumer appliances for domestic use are high in demand and families benefited by liberalisation have started spending on such white goods. Multi-national companies have come to Indian markets producing white goods and Indian producers have also been involved in the race. They could sustain only due to the increased consumerism in Indian society. (Total 156 words)