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countrys policy for a better economic growth. In 1991, India was almost bankrupt. Narsimha Raos Govt. adopted the LPG policy , under the pressure of IMF. It included opening of international trade and investment, deregulation & initiation of privatization and tax reforms.
Contents
Liberalization
Measures adopted for Liberalization. Advantages & Disadvantages of Liberalization. Privatization Measures adopted for Privatization. Advantages & Disadvantages of Privatization. Globalization Measures adopted for Globalization. Advantages & Disadvantages of Globalization. The Impact.
Liberalization
Economic Liberalization is a broad term that usually refers to fewer government regulations and restrictions in the economy in exchange for greater participation of private entities.
industries Increase in the investment limit of the small industries. Freedom to import the capital goods and raw material. Freedom to import technology. Liberalization of export and import transactions.
Advantages Of Liberalization
Increase the foreign investment. Increase the foreign exchange reserve.
Increase in consumption.
Control over price. Check on corruption.
Disadvantages Of Liberalization.
Increase in unemployment. Loss to domestic units. Increased dependence on foreign nations Unbalanced development Increase the imbalances.
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the
Advantages of Privatization.
Increase in efficiency.
Professional management.
Increase in competition. In line with international trends. Reduction in economic burden of Govt. Encouragement to new innovations.
Disadvantages of Privatization.
Industrial sickness.
Lack of welfare. Increase in inequality.
Problem of financing.
Political pressure. Increase in rural unemployment. Ignores the weaker sections.
Globalization
Globalization describes an ongoing process by
which regional economies, societies, and cultures have become integrated through a globe-spanning network of exchange. Sometimes it refers to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.
Export promotion.
Freedom to repatriate.
Advantages of Globalization.
Increase in foreign trade and investment. Increase in foreign collaboration. Increase in foreign exchange reserves. Expansion of market. Technological development. Development of services sectors.
Disadvantages of Globalization.
Loss of domestic industries. Unemployment. Exploitation of labour. Increase in inequalities. Dominance of foreign institutions.
The Impact
How much has India changed since then?
Since 1991, India's GDP has quadrupled, its forex reserves have surged from $5.8 billion to $279 billion, and exports from $18 billion to $178 billion.
Summary
Liberalization
Removing restrictions for better economic development. Privatization Control shifted to private sector for better services . Globalization Allowing foreign trade and investments. Impact on the country.
Thank You.
Efforts By: Prince Oberoi