Introduction
As someone who has lived through the pre and post economic liberalization 1991 era in India, I have experienced significant transformations in various facets of daily life. This article reflects on the changes witnessed over the decades and highlights how economic liberalization has impacted industries, consumer behavior, and overall societal norms in India.
Transformations in the Pre-Liberization Era
Before 1991, India underwent a period of economic and social regulation that was heavily influenced by policies initiated by the Indian government. One of the most vivid memories of this era is the process of purchasing a Bajaj Chetak scooter. In 1984, to reserve a Bajaj scooter, one had to pay a significant $150 for a US Dollar Draft, a requirement that seemed arbitrary at the time. The selection process was equally cumbersome, with a long wait list and the need to stand in line for months or even years. Eventually, a cash bribe of Rs. 1,000 could help secure a place in the list. Upon visiting the showroom, the options were limited, and one was often faced with a decision to take a green scooter or nothing at all. This scarcity and lack of choice were common across various sectors during the pre-liberalization era.
A similar experience could be observed when applying for a telephone line. The cost of installation varied widely: for Rs. 500, it took three years to get a connection, while Rs. 5,000 would fetch a connection in a year, and Rs. 15,000 guaranteed a line within a month. The process was not only lengthy but also frustrating due to the lack of accountability. Engineers often made visits based on their personal schedules, and a small cash bribe could expedite the process. These experiences were representative of the bureaucratic nature of the pre-liberalization era, characterized by delays, inefficiencies, and a lack of market-driven competition.
Impact of Economic Liberalization on Markets and Technology
One of the most profound impacts of economic liberalization has been the acceleration of market-driven reforms. Today, the same Bajaj showroom salesman shows a much more welcoming attitude, promising delivery of any color scooter within a day. The transformation from an era of scarcity and limited choice to one of abundance and consumer-driven preferences is a testament to economic liberalization. This shift is not limited to the automotive sector; it is evident in various industries, including telecommunications, television manufacturing, and consumer electronics.
Before 1991, accessing new technologies such as English movies was a lengthy process. Typically, films released in the United States would take 2-6 years to reach Indian screens. For instance, my brother praised the film Sholay, which was finally released in Tamil Nadu 18 months later in June 1976. In contrast, today, we enjoy worldwide releases, allowing entertainment to be consumed much more quickly and efficiently.
The pre-liberalization era also saw a monopolistic market for TV brands, with only four national TV brands available: ECTV, Government of India, Solidiare, Dyanora, and Onida. Customers had to order TVs and wait 1-3 months for delivery. Installation was often a challenge, with engineers taking days to weeks to install the TV with the antenna. State-specific brands such as Saba, Telerama, Salora, and Uptron further highlighted the fragmented market. Today, the landscape has changed, with online platforms like Amazon offering fast and convenient delivery, and in-home installation services making it easier to access the latest technology.
Impact on Service and Customer Experience
The changes in the service sector are equally noteworthy. Before economic liberalization, telecom and repair services were often unreliable and required extensive patience and paperwork. Today, the landscape has been completely transformed. Telecom companies offer a wide range of services, and repair engineers are more accountable and responsive. The era of cash bribes and lengthy waiting periods has given way to efficient processes and customer-friendly attitudes. This shift is also evident in the automotive industry, where the outward appearance of dealership staff has changed from arrogance to a more humble, customer-centric approach.
Another significant change has been the shift from manual labor to technology-driven solutions. The exponential growth in technology has led to the obsolescence of certain services and professions, such as the phone engineer. Once, these professionals were in high demand and held positions of considerable influence. However, with the introduction of widespread access to mobile phones and home internet, their roles have diminished. In contrast, the rise of tech companies and e-commerce platforms like Amazon has created new job opportunities and streamlined the delivery processes significantly.
In conclusion, the pre and post-liberalization era in India has witnessed a paradigm shift in consumer behavior, service industries, and technological advancements. The changes reflect a broader trend of increased market competition, technological innovation, and a more customer-centric approach. The feeling of living through this transformation is indeed priceless, and it serves as a testament to the power of economic liberalization in driving positive change and improving quality of life for millions of Indians.
Key Takeaways:
Economic liberalization has transformed consumer behavior and service industries in India. The pre-liberalization era was characterized by limited choice, long waiting periods, and inefficient services. Technological advancements and market-driven reforms have created more convenient and customer-friendly solutions. The shift from cash bribes to efficient processes and technological solutions has significantly improved the overall customer experience.References:
Bhagwati, J. (2004). The Wetware of Globalization: The Nuts and Bolts of a New Era of Trade, Technology, and Investment. Oxford University Press. Chand, M. (2016). India Since 1991: Economic Reforms and Their Impact. Routledge. Rao, S. R. (2001). India's Economic Liberalization: Myths and Realities. Oxford University Press.