Liberalization And Globalization Essay

Liberalization Globalization and Privatization After 1991

Liberalization Globalization and Privatization are the three main pillars of modern global economy. In the Modern era Economy is one the most important thread which connects the nations across the globe. Need of one nation can be fulfilled by other and vice-versa Concept of LPG made the whole world a single unit.

What do you mean by Liberalization Globalization and Privatization?

Liberalization: It defined as making economy free to enter in the market and establish there venture in the country. Liberalization refers liberal of economy in terms of movements of flow of goods and services within and out of nation. Liberalization promotes the development of any nation. It essentially involves

Privatization is necessary for expanding one 's economy and enhance the global connectivity. Privatization strengthen the private sectors. It may be noted that privatization changes the role of state and not necessarily reduces it. The monitoring and regulation of the privatized system, discussed later, is a complex and difficult job.

Globalization: Today, Indian economy is open to foreign financial investments, imports of capital equipment, technology and personnel, in almost all sectors. It describes the process by which regional economies societies and cultures have integrated across the globe. Globalization made the whole world as a single unit. Interdependence of one nation on other reduces the barriers of modern era.

Impact of Liberalization on Indian Economy

• The low annual growth rate of the economy of India before 1980, which stagnated around 3.5% from 1950 to 1980 which per capital income averaged 1.3%.

• 2. A huge public sector emerged. State owned enterprises made large Losses.

• 3. Infrastructure investment was very poor because of the public sector

• 2. Reduced the widespread unemployment and poverty.

• 3. India became self-reliant and set up a strong industrial base with emphasis on heavy and basic industries.

• 4. Reduce inequalities of income and wealth in India.

• 5. LPG help to attract foreign capital and technology to India.

• 6. Procedures for imports and exports got simplified.

• 8. Removal of restrictions on the movement of goods and services.

• 9. LPG help to open and expand the Indian markets to the world.

Concept of LPG has changed the status of India. India got its independence in 1947 but the real way of development started since 1991 when India has adopted the LPG model. Till 1990 India stand nowhere in global market but since 1991 India has progressed a lot .Today Indian market is one of the most valuable market. Indian economy is one of the fastest growing major economy of the world. India’s growth rate, at 7.4 per cent in 2014, makes it the fastest growing major economy. India is now a $2-trillion economy and it has added $1-trillion in just seven Years. World Bank has also predicted that within 5 to 7 years Indian economy will be the largest economy of the