Liberalization Privatization Globalization — Policy Reforms

Entry	Year	Description	Impact
73rd Amendment Act	1992	Granted constitutional status to Panchayati Raj Institutions, establishing a three-tier system of local self-governance in rural areas. Mandated regular elections, reservation of seats for SC/ST and women, and devolution of powers and responsibilities.	While not directly part of the central LPG reforms, it significantly impacted economic governance at the grassroots. It empowered local bodies to prepare plans for economic development and social justice, including subjects like agriculture, rural industries, and poverty alleviation. This decentralized approach to economic planning complemented the broader national reforms by fostering local economic initiatives and resource mobilization, ensuring that the benefits of growth could potentially reach the rural populace more effectively.
74th Amendment Act	1992	Granted constitutional status to Urban Local Bodies (Municipalities), establishing a similar three-tier structure for urban areas. Provided for their composition, powers, and functions, including urban planning and economic development.	Similar to the 73rd Amendment, this amendment strengthened economic governance in urban areas. Municipalities were entrusted with responsibilities related to urban planning, regulation of land use, and promotion of economic and social development. As liberalization led to increased urbanization and industrial growth, empowering urban local bodies became crucial for managing urban infrastructure, attracting investment, and providing essential services, thereby supporting the economic transformation driven by LPG reforms at the local level.