Paradigm Shift under Globalisation in Formulating Social Policies in India: A Sociological Perspective

Introduction

Globalisation has brought about a significant transformation in the socio-economic and political landscape of nations worldwide. In India, the process of globalisation, initiated in the early 1990s through economic liberalisation, has led to a paradigm shift in the formulation and implementation of social policies. Traditionally, Indian social policies were rooted in welfare-oriented approaches influenced by socialist principles. However, under globalisation, the state’s role has been redefined, with an increasing emphasis on market-driven policies, privatisation, and partnerships with non-state actors.

This article examines the changing paradigms in social policy formulation in India under globalisation from a sociological perspective. It explores how globalisation has influenced policy frameworks, the role of international agencies, the shift from welfare to neoliberal policies, and the implications for marginalized communities.

The Traditional Welfare Model and Its Evolution

Post-independence, India adopted a welfare state model influenced by socialist ideals. The state played a central role in providing education, healthcare, employment, and social security. Policies such as the Five-Year Plans, Public Distribution System (PDS), and affirmative action for Scheduled Castes (SCs) and Scheduled Tribes (STs) were designed to reduce inequality and promote social justice.

However, by the 1980s, inefficiencies in state-led welfare mechanisms, bureaucratic corruption, and fiscal constraints led to a re-evaluation of policy approaches. The economic crisis of 1991 accelerated India’s integration into the global economy, leading to structural adjustment programs (SAPs) mandated by the International Monetary Fund (IMF) and World Bank. This marked the beginning of a neoliberal turn in social policy.

Globalisation and the Neoliberal Shift in Social Policies

1. From State Welfare to Market-Driven Policies

Under globalisation, the Indian state gradually reduced its direct involvement in welfare provision, promoting privatisation and public-private partnerships (PPPs). Key sectors such as education, healthcare, and social security saw increasing private sector participation.

• Education: The Right to Education Act (2009) ensured free and compulsory education, but privatisation led to a dual system—quality education for the elite and underfunded government schools for the poor.
• Healthcare: The National Health Policy (2017) encouraged private healthcare, leading to disparities where the poor rely on under-resourced public hospitals while the affluent access corporate hospitals.
• Employment: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005) provided wage employment, but informalisation of labour increased due to global market demands.

2. Influence of International Organisations

Global institutions like the World Bank, IMF, and World Trade Organization (WTO) have shaped India’s social policies by advocating:

• Fiscal austerity, reducing subsidies and social spending.
• Decentralisation, shifting responsibilities to local governments (Panchayati Raj) without adequate funding.
• Targeted welfare instead of universal schemes, leading to exclusion errors (e.g., Aadhaar-linked benefits).

3. Rise of Civil Society and NGOs

Globalisation facilitated the growth of NGOs and international aid agencies in policy implementation. While they fill gaps left by the state, critics argue they depoliticise social movements by aligning with donor agendas rather than grassroots demands.

Impact on Marginalised Communities

1. Caste and Social Inequalities

Despite affirmative action, neoliberal policies have exacerbated caste-based disparities. Privatisation of education and jobs reduced reservations’ effectiveness, as private institutions are not mandated to follow quotas.

2. Gender and Labour Policies

Globalisation increased women’s workforce participation but mostly in informal, low-wage sectors (e.g., garment factories, domestic work). Social security for informal workers remains weak.

3. Rural-Urban Divide

Agricultural policies favouring corporate farming (e.g., contract farming under WTO) have displaced small farmers, leading to agrarian distress and migration to urban slums.

Resistance and Alternative Paradigms

Social movements (e.g., anti-privatisation protests, farmers’ agitations) highlight resistance to neoliberal policies. Some states (e.g., Kerala) have combined welfare schemes with participatory democracy, offering an alternative model.

Conclusion

Globalisation has reconfigured India’s social policy framework from a state-centric welfare model to a market-driven, neoliberal approach. While this shift has spurred economic growth, it has also deepened inequalities. A balanced approach—combining market efficiency with strong welfare mechanisms—is essential for inclusive development. Sociological insights emphasise the need for policies that address structural inequalities rather than merely adapting to global economic demands.

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Topic Related Questions

5-Mark Questions (Short Answer Type)

1. Define globalisation and explain its impact on social policies in India.
2. How has the role of the state changed in social policy formulation under globalisation?
3. What is the neoliberal shift in social policies? Give two examples from India.
4. How have international agencies like the World Bank influenced India’s social policies?
5. Briefly discuss the impact of globalisation on education policies in India.
6. What are the effects of privatisation on healthcare in India?
7. How does MGNREGA reflect the state’s response to employment challenges under globalisation?
8. Explain the role of NGOs in implementing social policies in India.
9. How has globalisation affected caste-based inequalities in India?
10. What is the impact of globalisation on women’s labour participation in India?

10-Mark Questions (Detailed Answer Type)

1. Discuss the paradigm shift from welfare-based to market-driven social policies in India under globalisation.
2. Analyse the influence of international organisations (IMF, World Bank, WTO) on India’s social policy framework.
3. Examine the impact of globalisation on rural-urban disparities in India with reference to social policies.
4. How has the privatisation of education affected social inequalities in India?
5. Critically evaluate the role of civil society and NGOs in shaping social policies in India post-liberalisation.
6. Discuss the challenges faced by marginalised communities (SC/ST, women, rural poor) due to neoliberal social policies.
7. Compare the traditional welfare model and the current neoliberal approach in India’s social policy formulation.
8. How has globalisation influenced labour policies and informalisation of work in India?
9. Explain the resistance movements against neoliberal policies in India with examples.
10. Assess the effectiveness of Aadhaar-linked welfare schemes in India under globalisation.

15-Mark Questions (Essay-Type/Long Answer)

1. “Globalisation has redefined social policy formulation in India, shifting from state-led welfare to market-driven approaches.” Critically analyse this statement.
2. Examine the impact of globalisation on India’s social policies with special reference to education, healthcare, and employment sectors.
3. Discuss how neoliberal economic reforms have influenced social inequalities in India. Support your answer with sociological perspectives.
4. Evaluate the role of international agencies and civil society in shaping India’s social policies in the era of globalisation.
5. “The shift from universal welfare to targeted schemes under globalisation has excluded the most vulnerable.” Do you agree? Justify your answer.
6. How has globalisation affected gender and caste dynamics in India’s social policy framework?
7. Critically assess the successes and failures of India’s social policies in the context of globalisation.
8. Discuss alternative paradigms (e.g., Kerala Model) that challenge neoliberal social policies in India.
9. Analyse the impact of privatisation and PPP (Public-Private Partnerships) on India’s social sector development.
10. “Globalisation has led to both opportunities and exclusions in India’s social policy landscape.” Elaborate with suitable examples.