The LPG policy helped India to overcome its debt crisis in 1991 and access global markets. The policy included liberalisation which aimed to remove all restrictions that hindered growth and development. The industrial sector is a testament to that with the abolition of the License Raj streamlining the bureaucracy and allowing private sector participation thereby attracting multi-national investment. Furthermore, tax reforms including reduced corporate taxes and simplified filing procedures further fueled the incentive to invest.

Globalisation enabled India to become an outsourcing hub for multi-national companies. The combination of low wages coupled with the availability of skilled manpower in India attracted investment and led to a rise in employment especially in the service sector. This is because a rise in India’s productivity was mainly evident in the service sector encountering rapid growth from from 6.7 percent in 1980-1991 to a whopping 10 percent in 2007-2012. 

However, the introduction of globalization resulted in the agricultural sector and industrial sector experiencing slow growth as a result of production shifting to the foreign market with demand following suit. Cheaper imports diminished demand for domestic goods causing domestic firms to close and employment to decline. While the LPG policy was effective in raising productivity in the service sector, employment, and attracting investment, the policy failed to do so in the agricultural sector and was criticized for widening the gap between the rich and the poor.