Q : Discuss the impact of post-liberal economy on ethnic identity and communalism.  ( 2023 PYQ, 15 Marks )

Introduction :

Post-liberalization, India’s economic reforms since 1991 unleashed globalization, privatization, and market expansion. While these changes accelerated growth, they also restructured social identities  often intensifying ethnic consciousness and communal polarization amid rising economic inequalities.

Main Body 

Impact of Post-Liberal Economy on Ethnic Identity

1. Reassertion of Local and Cultural Identities:
• Economic globalization triggered fears of cultural homogenization, leading to the revival of regional, linguistic, and caste-based identities as markers of belonging and resistance — e.g., Dravidian assertion in Tamil Nadu, Jharkhand and Telangana movements.
2. Rise of Identity Politics:
• The competition for state resources, jobs, and political power under neoliberal reforms intensified ethnic mobilization — as seen in Mandal politics and regional autonomy movements in the Northeast.
3. Economic Exclusion and Identity-Based Solidarity:
• Unequal benefits of liberalization created new class divides, pushing marginalized groups (Dalits, Adivasis, minorities) to consolidate around ethnic solidarity as a means of asserting dignity and rights.
4. Cultural Commodification:
• Global markets also commodified ethnic symbols — festivals, crafts, and cuisines — turning identity into a market product. This both empowered communities economically and diluted authenticity.

Impact on Communalism

1. Economic Competition Fueling Communal Tensions:
• Market-driven inequalities sharpened inter-community competition for limited resources (jobs, land, urban space), reinforcing communal divides — e.g., riots in Mumbai (1992–93) and Gujarat (2002) amid uneven growth.
2. Media and Political Polarization:
• Liberalization of media amplified religious narratives; corporate-backed media and digital platforms intensified communal propaganda and identity-based mobilization.
3. State’s Changing Role:
• The neoliberal state, focusing on growth over welfare, reduced its mediating capacity in social conflicts, allowing religious organizations to fill welfare gaps and deepen communal networks.
4. Urban Marginalization and Ghettoization:
• Urban reforms and land speculation post-liberalization displaced poor minorities into segregated spaces — e.g., Muslim ghettos in Ahmedabad and Mumbai — reinforcing social distance and distrust.

Conclusion :

As Anthony Giddens notes, globalization simultaneously unifies and fragments societies. India’s post-liberal economy must therefore evolve toward a model of “inclusive globalization” that sustains economic progress while nurturing social cohesion and pluralism.