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Abstract
India's New Economic Policy has brought many changes in Indian economy, particularly to middleclass society. The larger number of India's middle class and their consumption pattern is predominant drivers of her economic growth and development. However, the transitional economy with sudden structural changes put the mass market into jeopardy. The steep and wide gap between richest and poorest is a unique problem for India to identify middleclass and their growing needs. Immature consumer markets, feeding to vast population, inordinate income inequality, cross-cultural divergence, migration etc. are some of the major issues with regard to middleclass economy. This review article tries to explore some of the hidden facts pertaining to liberalization policy of Government of India and its impact on middleclass economy. Secondary data were used for the study. Implications of the study were discussed.
Key words: Globalization, middleclass economy, liberalization, new economic policy, livelihood and private consumption.
1. Introduction
India's New Economic Policy by way of liberalization, privatization and globalization (LPG) has brought many changes in Indian economy. The larger number of India's middle class and their consumption pattern is predominant drivers of her economic growth and development. Asia's young population with rising productivity, drastically changing culture and frequent labour mobility are important milestones in the liberalization history. However, the transitional economy with sudden structural changes put India's mass market into jeopardy. Immature consumer markets, feeding to vast population, inordinate income inequality, cross-cultural divergence, migration etc are some of the major issues with regard to middleclass economy. As India is having second largest population in the globe her fundamental challenges lies on many fronts; resource management, production of alternate energy, efficient management of farming and manufacturing industry etc. The India's distribution process is one of largest processes in the world. The steep and wide gap between richest and poorest is a unique problem for India to identify middleclass and their growing needs. The present policy of deregulation of many public sector organizations ceases job security and employees' welfare measures considerably. The sudden flow of FDI (Foreign Direct Investment) in major industries including defense, retail, insurance and other service sectors will result into larger amount of security concern and price volatility of consumer market. To gain comparative and competitive advantages, developing nations are continuously...