Liberalization of Indian
Economics: A Study on
› Objectives of the project
› Hypothesis of Research
› Primary Data - Samples
› Questions - Primary data
› Secondary Data – Samples
› Comparison - Primary Data Example
› Comparison – Secondary Data Example
› Drawbacks of Liberalization
Pre – Liberalization era
› Before liberalization India had no access to funds and technology which effected the
infrastructure negatively suppressing the growth of construction industries.
› There were many barricades which hampered the growth of the Construction Industry some
them are taxation structure license raj etc.
Post – Liberalization era
There were many changes that happened after the liberalization of Indian economy in 1991. To
study the impact of liberalization on Construction Industry, the post liberalization era has been
categorized into 5 sections.
Characteristics of Market
Access to Financial resources
Access to Technology
Import license and Export License
Objectives of the project
› Objective of the project is to study the effect of Labialization on Indian construction sector
and to compare its accountability in pre 1990-91 to post 1991..
› To study the transformation of unorganized industries into strong competitive organized
industries in India which was mainly fueled Indian Construction sector and related market.
› The main objective of this study is to compare and analyze the markets trends and reforms
brought in with Liberalization.
› Method of collection
– Primary Data : Delphi Method
– Secondary Data : Construction sector publications.
› Sample size
– Primary Data – 10 No
– Secondary Data – 20 No
– Respondent's data were treated as tangiable.
Hypothesis of Research
› The study is basically carried out to explain the pre-liberalization and post liberalization era
in construction sector.
› Null Hypothesis can be explained as, “There is no significant changes in the construction
sector after Liberalization in India”.
Primary Data - Samples
The Primary Data consists of expert opinion from the construction sector where as the
Secondary data comprises primarily the study of publications by various construction related
organisations and common groups of experts in the field.
Primary data Samples :
1. B. M. Bansal - Former Chairman of Indian Oil Corporation limited .
2. Sudhir Vasudeva - Chairman and Managing Director of ONGC.
3. Arup Roy Choudhury - Chairman and Managing Director of NTPC.
4. Chandra Shekar Verma - CEO of Steel Authority of India
5. R. P. Singh - Chairman of National Highways Authority of India (NHAI)
6. Ajit Gulabchand - Chairman and Managing Director of Hindustan Construction Company
7. R.P Tak - Chairman-cum-Managing Director of Cement Corporation of India
8. Hemant M. Nerurkar - CEO of TATA Steel
9. Mohandas Saini - CEO of the Construction Division of Shapoorji Pallonji & Co. Ltd.
10. A. M. NAIK - Managing Director and CEO of L&T.
Questions formed for the project for the
collection of data from Primary data
What was the characteristics of construction industry before economic liberalization in
What was the characteristics of construction industry after economic liberalization in
How do you explain the impact of liberalization of Indian economy on Construction
What are the most notable changes that took place after the liberalization of Indian
Which fields in Construction Industry have changed after liberalization of Indian
What is the impact of liberalization on the employment in Construction Industry?
What is the impact of liberalization on construction technology?
What is the impact of liberalization on Imports and exports?
How does the liberalization helps in the progress of Construction Industry?
10. Do you think there is a development in Construction Industry after Liberalization of Indian
Secondary Data – Samples
This comprises primarily the study of publications by various construction related organisations and
common groups of experts in the field. This consists of the companies statistics from the preliberalization to post liberalization era. The statistics are also collected by some key consultancies in
construction sector. To study this we have kept the sample size for this to be 20.
1. Indian Oil Corporation Limited
11. Madras Cements
2. Hindustan Petroleum Corporation Limited
12. National Highways Authority of India
3. Bharath Petroleum Corporation Limited
13. Coal India Limited
4. Oil and Natural Gas Corporation
14. Indian Railways
5. National Thermal Power Corporation Limited
15. IRCON Limited
6. Steel Authority of India Limited
16. Larsen & Toubro
7. TATA STEEL
17. Shapoorji Pallonji Group
8. Jindal Steels
18. Gammon India
9. Cement Corporation of India
19. GMR Group
10. India cements
20. Hindustan Construction Company
Comparison - Secondary Data Examples
Consumption of Steel - Data by SAIL
Revenues from IOCL
The Liberalized economic policy, adopted by the Govt. of India in July 1991, sought to
deregulate & de-license the core sectors with partial disinvestments of Govt. Equity in Public
Sector Undertakings & other measures.
The most notable changes that took place after 1991 were in the field of employment,
technology and trade which in turn increased the GDP constituting the growth of Indian
The Construction Industry became financially and technically secured after 1991 liberalization.
As the restrictions on the trading were eased the technology transfer became very easy.
The liberalization has helped the construction companies create more jobs and which also
effects the education system to modernize itself so that we can decrease the dependency on
Today it employs over 3 crore people and it generates more than ₹10,000 crores in revenue.
Drawbacks of Liberalization
› Many subsidies on materials reduce the income of the country.
› Loss to domestic units.
› Increase dependency on foreign industries.
› Concentration of industries over service sector reduced the scope for innovation.
› The small vendors and manufacturers are the ones who will be affected most.
By comparing both primary and secondary data it is been concluded that the Null hypothesis
defined in the project is rejected and the alternative hypothesis is accepted, which means there is a
significant change in availability of technology, resources, access to funds and growth in innovation
Analyzing the above samples we can see that there was dip in the growth of construction from 60
per cent in 1970-71 to 34 per cent in 1990-91. Thereafter, it increased to 48 per cent in 1993-94 and
stood at 44 per cent in 1999-2000.
The construction industry has contributed an estimated ₹
670,778 crore to the national GDP in
2011-12 (a share of around 8%). In 2011, there were slightly over 500 construction equipment
manufacturing companies in all of India. The sector is labor-intensive and, including indirect jobs,
provides employment to more than 35 million people. In the 21st century, there has been an
increase in the share of the construction sector in GDP and capital formation.
So we can conclude that the Liberalization of Indian economy has helped the construction Industry
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