Liberalisation: it refers to procedural simplification, removal of restrictions, delicensing and removal of unnecessary bureaucratic hurdles.
Privatization: It refers to opening the economy for privatization. In privatization, the areas earlier reserved for public sector public sector were made open for private sector. The private sector was given the main importance.
Globalisation: It refers to opening of the domestic economy for foreign enterprises. Import duties were reduced.
The average annual growth rate was 4.4% per annum.
The industrial sector will have to grow at over 10% to achieve the target of 8% growth for GDP.
Special emphasis is given for the infrastructure development, power generation, development of roads, railways, air-ports etc. it was thought that rapid industrial growth can be achieved through improving the quality of infrastructure.
Special concessions were extended to ready-made garment industry like liberal import of capital goods; tax-concessions etc. were extended. Apparel-parks have been established to promote the same.
To make the industry more competitive, R&D, modernization and technological up gradation activities have been emphasized.
Loss making public sector units have been disinvested
Special concessions were given to export oriented units in order to promote exports.
Special Economic Zones have been set up for promoting rapid industrialization of the economy. For promoting agro based industrial units, agro export zones have been set up. For promoting leather industry, leather industry development programmes have been undertaken.
More privatization has been encouraged. The funds from global capital market are also encouraged.
Foreign investments are encouraged in the service sector like banking, insurance etc…