SlideShare a Scribd company logo
1 of 11
Download to read offline
Presentation on
   “LiberaLization of india”



       Presented By
   “Gaurav Patel”
Taxila Business School, Jaipur
   MBA+PGDBM (07877549750)
Introduction of Liberalization in India
  The Pre-liberalization Era    – Prior to 1991

  The Post Liberalization Era -- The Present Era.

         Why Did it Start…….????
 In 1991, India Faced a “Balance of Payments Crisis”.

 It had to Pledge its Gold to Foreign Countries.

 It was a deal with The IMF.

 Then PM of India, P V Narsimha Rao Knew that It was time for Some Bold
  Decision.
History of Liberalization in India-:
 July 1991,India has taken a series of measures to structure the economy
  and improve the BOP

 The new economic policy introduced changes in several areas.

 The policy have salient feature which are-:

1)         Liberalization (internal and external)
2)         Extending Privatization
3)         Globalization of the economy

Which are known as “LPG”. (liberalization privatization globalization)
Economic Liberalization in India
 It means the process of opening up of the Indian economy to trade
and investment with the rest of the world.

 It means that opening the Door for doing Business to all over the
world.

 Till 1991 India had a import protection policy wherein trade with the
rest of the world was limited to exports.

 Foreign investment was very difficult to come into India due to a
bureaucratic framework.

 After the start of the economic liberalization, India started getting
huge capital inflows and it has emerged as the 2nd fastest growing
country in the world.
The Policies of Liberalization Included the
 Following…………………………………...

 Opening the Gate for International Trade and Investment.

 Deregulation. (The removal of government controls from an industry
or sector, to allow for a free and efficient marketplace).

 Initiation of Privatization.

 Tax Reforms.

 Inflation Controlling Measure.
Impact of Liberalization on Indian Economy-:
  Increase in Employment.

  Arrival of New Technology or Development of Technology.

  Development of Infrastructure.

  Identity at World Level.

  Increase Our Currency Value (INR).

  GDP Growth.

  Increase Consumption and Adaptation of New Lifestyle.

  Increment of Competition.

  Increment in Foreign Investor.
Advantages of liberalization
    Development of economy without capital investment.

    Increase the foreign investment.

    Increase the foreign exchange reserve.

    Increase in consumption and Control over price.

    Reduction in dependence on external commercial borrowings
Disadvantages of Liberalization

  Loss to domestic units.

  Increase dependence on foreign nations.
Privatization-:
 Privatization means transfer of ownership and/or management
  of an enterprise from the public sector to the private sector .

 Privatization is opening up of an industry that has been reserved
  for public sector to the private sector.

 Privatization means replacing government monopolies with the
 competitive pressures of the marketplace to encourage efficiency,
 quality and innovation in the delivery of goods and services.
Globalization-:

 It Means that opening up of the economy for foreign direct investment by
liberalizing the rules and regulations and by creating favorable socio-economic
and political climate for global business.

 Opening and planning to expand business throughout the world.

 Buying and selling goods and services from/to any countries in the world.
Thank You
….............
--------------
==========

More Related Content

What's hot

Exim bank of india
Exim bank of indiaExim bank of india
Exim bank of indiaginnyssharma
 
Excahange rate determination
Excahange rate determinationExcahange rate determination
Excahange rate determinationDaksh Goyal
 
New industrial policy 1991
New industrial policy 1991New industrial policy 1991
New industrial policy 1991Sunil Meena
 
India's trade policy.ppt
India's trade policy.pptIndia's trade policy.ppt
India's trade policy.pptShikha Gupta
 
Foreign Direct Investment
Foreign Direct InvestmentForeign Direct Investment
Foreign Direct InvestmentShahzad Khan
 
Reforms in indian money n capital market
Reforms in indian money n capital marketReforms in indian money n capital market
Reforms in indian money n capital marketAmrit Mty
 
IFCI, Industrial Finance Corporation of INDIA
IFCI, Industrial Finance Corporation of INDIAIFCI, Industrial Finance Corporation of INDIA
IFCI, Industrial Finance Corporation of INDIAEr. Vaibhav Agarwal
 
Foreign direct investment(fdi)
Foreign direct investment(fdi)Foreign direct investment(fdi)
Foreign direct investment(fdi)anytopic
 
India's foreign trade policy
India's foreign trade policyIndia's foreign trade policy
India's foreign trade policyKrishaMalde1
 

What's hot (20)

Exim bank of india
Exim bank of indiaExim bank of india
Exim bank of india
 
Excahange rate determination
Excahange rate determinationExcahange rate determination
Excahange rate determination
 
Liberalization
LiberalizationLiberalization
Liberalization
 
New industrial policy 1991
New industrial policy 1991New industrial policy 1991
New industrial policy 1991
 
FERA and FEMA
FERA and FEMAFERA and FEMA
FERA and FEMA
 
The New Economic Policy 1991
The New Economic Policy 1991The New Economic Policy 1991
The New Economic Policy 1991
 
India's trade policy.ppt
India's trade policy.pptIndia's trade policy.ppt
India's trade policy.ppt
 
Foreign Direct Investment
Foreign Direct InvestmentForeign Direct Investment
Foreign Direct Investment
 
Reforms in indian money n capital market
Reforms in indian money n capital marketReforms in indian money n capital market
Reforms in indian money n capital market
 
IFCI, Industrial Finance Corporation of INDIA
IFCI, Industrial Finance Corporation of INDIAIFCI, Industrial Finance Corporation of INDIA
IFCI, Industrial Finance Corporation of INDIA
 
India’s foreign trade
India’s foreign tradeIndia’s foreign trade
India’s foreign trade
 
Types of FDI
Types of FDITypes of FDI
Types of FDI
 
Liberalisation
LiberalisationLiberalisation
Liberalisation
 
Foreign direct investment(fdi)
Foreign direct investment(fdi)Foreign direct investment(fdi)
Foreign direct investment(fdi)
 
Foreign direct investment
Foreign direct investmentForeign direct investment
Foreign direct investment
 
FDI flows in India
FDI flows in India FDI flows in India
FDI flows in India
 
FOREIGN CAPITAL
FOREIGN CAPITALFOREIGN CAPITAL
FOREIGN CAPITAL
 
India's foreign trade policy
India's foreign trade policyIndia's foreign trade policy
India's foreign trade policy
 
Business cycle
Business cycleBusiness cycle
Business cycle
 
LPG
LPGLPG
LPG
 

Viewers also liked

LIBRALISATION PRIVATISATION AND GLOBALISATION
LIBRALISATION PRIVATISATION AND GLOBALISATIONLIBRALISATION PRIVATISATION AND GLOBALISATION
LIBRALISATION PRIVATISATION AND GLOBALISATIONSourabh Modgil
 
Difference between Micro Economics and Macro Economics
Difference between Micro Economics and Macro EconomicsDifference between Micro Economics and Macro Economics
Difference between Micro Economics and Macro Economicsrprajat007
 
ECONOMIC LIBERALIZATION in india
ECONOMIC LIBERALIZATION  in india ECONOMIC LIBERALIZATION  in india
ECONOMIC LIBERALIZATION in india Abhinav Tyagi
 
Indian Economic Liberalisation
Indian Economic LiberalisationIndian Economic Liberalisation
Indian Economic LiberalisationVishal Jagetia
 
Liberalisation, privatisation and globalisation.
Liberalisation, privatisation and globalisation.Liberalisation, privatisation and globalisation.
Liberalisation, privatisation and globalisation.Sweetp999
 

Viewers also liked (6)

LIBRALISATION PRIVATISATION AND GLOBALISATION
LIBRALISATION PRIVATISATION AND GLOBALISATIONLIBRALISATION PRIVATISATION AND GLOBALISATION
LIBRALISATION PRIVATISATION AND GLOBALISATION
 
Liaberalisation ppt
Liaberalisation pptLiaberalisation ppt
Liaberalisation ppt
 
Difference between Micro Economics and Macro Economics
Difference between Micro Economics and Macro EconomicsDifference between Micro Economics and Macro Economics
Difference between Micro Economics and Macro Economics
 
ECONOMIC LIBERALIZATION in india
ECONOMIC LIBERALIZATION  in india ECONOMIC LIBERALIZATION  in india
ECONOMIC LIBERALIZATION in india
 
Indian Economic Liberalisation
Indian Economic LiberalisationIndian Economic Liberalisation
Indian Economic Liberalisation
 
Liberalisation, privatisation and globalisation.
Liberalisation, privatisation and globalisation.Liberalisation, privatisation and globalisation.
Liberalisation, privatisation and globalisation.
 

Similar to Liberalization of india (nigam sir)

LIBERALISATION PRIVATISATION GLOBALISATION
LIBERALISATION PRIVATISATION GLOBALISATIONLIBERALISATION PRIVATISATION GLOBALISATION
LIBERALISATION PRIVATISATION GLOBALISATIONDeepak kumar
 
1992 indian economical reforms
1992 indian economical reforms1992 indian economical reforms
1992 indian economical reformsHemant kumar verma
 
New economic policy and SAP
New economic policy and SAPNew economic policy and SAP
New economic policy and SAPManuj Goyal
 
New Economic Policy 1991
New Economic Policy 1991 New Economic Policy 1991
New Economic Policy 1991 AshmitGupta8
 
LIBERALIZATION PRIVATIZATION GLOBALIZATION
LIBERALIZATION PRIVATIZATION GLOBALIZATIONLIBERALIZATION PRIVATIZATION GLOBALIZATION
LIBERALIZATION PRIVATIZATION GLOBALIZATIONBrenwyn Saldanha
 
Economic reforms 1991
Economic reforms 1991 Economic reforms 1991
Economic reforms 1991 Pranav Krishna
 
New Economic Policy
New Economic PolicyNew Economic Policy
New Economic PolicyIIPM
 
Liberalisation privatisation globalisation
Liberalisation privatisation globalisation Liberalisation privatisation globalisation
Liberalisation privatisation globalisation Naveen Muley
 
Concept of LPG & Tourism.pptx
Concept of LPG & Tourism.pptxConcept of LPG & Tourism.pptx
Concept of LPG & Tourism.pptxRajeshKumar196125
 
Policies & its impact on indian economy
 Policies & its impact on  indian economy Policies & its impact on  indian economy
Policies & its impact on indian economyLaxman Bhadane
 
New Economic policy 1991
New Economic policy 1991New Economic policy 1991
New Economic policy 1991Raman Dhiman
 
Module 2 -Economic policy.pptx
Module 2 -Economic policy.pptxModule 2 -Economic policy.pptx
Module 2 -Economic policy.pptxJyotiVidhani1
 
LPG Model.pptx....................................
LPG Model.pptx....................................LPG Model.pptx....................................
LPG Model.pptx....................................MalkeetSingh85
 
Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2Byju Antony
 
International business- Bartlett and ghostly model for internationalization
International business- Bartlett and ghostly model for internationalizationInternational business- Bartlett and ghostly model for internationalization
International business- Bartlett and ghostly model for internationalizationallblue732002
 

Similar to Liberalization of india (nigam sir) (20)

India's experience of liberalization and globalization
India's experience of liberalization and globalizationIndia's experience of liberalization and globalization
India's experience of liberalization and globalization
 
LIBERALISATION PRIVATISATION GLOBALISATION
LIBERALISATION PRIVATISATION GLOBALISATIONLIBERALISATION PRIVATISATION GLOBALISATION
LIBERALISATION PRIVATISATION GLOBALISATION
 
1992 indian economical reforms
1992 indian economical reforms1992 indian economical reforms
1992 indian economical reforms
 
New economic policy and SAP
New economic policy and SAPNew economic policy and SAP
New economic policy and SAP
 
New Economic Policy 1991
New Economic Policy 1991 New Economic Policy 1991
New Economic Policy 1991
 
LIBERALIZATION PRIVATIZATION GLOBALIZATION
LIBERALIZATION PRIVATIZATION GLOBALIZATIONLIBERALIZATION PRIVATIZATION GLOBALIZATION
LIBERALIZATION PRIVATIZATION GLOBALIZATION
 
Economic reforms 1991
Economic reforms 1991 Economic reforms 1991
Economic reforms 1991
 
New Economic Policy
New Economic PolicyNew Economic Policy
New Economic Policy
 
Liberalisation privatisation globalisation
Liberalisation privatisation globalisation Liberalisation privatisation globalisation
Liberalisation privatisation globalisation
 
Concept of LPG & Tourism.pptx
Concept of LPG & Tourism.pptxConcept of LPG & Tourism.pptx
Concept of LPG & Tourism.pptx
 
30 business i environment i society mba 2016
30 business i environment i society mba 201630 business i environment i society mba 2016
30 business i environment i society mba 2016
 
New economic policy of india
New economic policy of indiaNew economic policy of india
New economic policy of india
 
LPG
LPG LPG
LPG
 
Policies & its impact on indian economy
 Policies & its impact on  indian economy Policies & its impact on  indian economy
Policies & its impact on indian economy
 
New Economic policy 1991
New Economic policy 1991New Economic policy 1991
New Economic policy 1991
 
Module 2 -Economic policy.pptx
Module 2 -Economic policy.pptxModule 2 -Economic policy.pptx
Module 2 -Economic policy.pptx
 
LPG Model.pptx....................................
LPG Model.pptx....................................LPG Model.pptx....................................
LPG Model.pptx....................................
 
LPG policy
LPG policyLPG policy
LPG policy
 
Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2
 
International business- Bartlett and ghostly model for internationalization
International business- Bartlett and ghostly model for internationalizationInternational business- Bartlett and ghostly model for internationalization
International business- Bartlett and ghostly model for internationalization
 

Recently uploaded

Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxRich Reba
 
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Aggregage
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsIndiaMART InterMESH Limited
 
Interoperability and ecosystems: Assembling the industrial metaverse
Interoperability and ecosystems:  Assembling the industrial metaverseInteroperability and ecosystems:  Assembling the industrial metaverse
Interoperability and ecosystems: Assembling the industrial metaverseSiemens
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...Operational Excellence Consulting
 
Customizable Contents Restoration Training
Customizable Contents Restoration TrainingCustomizable Contents Restoration Training
Customizable Contents Restoration TrainingCalvinarnold843
 
Simplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansSimplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansNugget Global
 
How to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHow to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHelp Desk Migration
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdfSherl Simon
 
Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Lviv Startup Club
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingrajputmeenakshi733
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIBGregory DeShields
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...PRnews2
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...SOFTTECHHUB
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifeBhavana Pujan Kendra
 

Recently uploaded (20)

Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptx
 
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
Strategic Project Finance Essentials: A Project Manager’s Guide to Financial ...
 
Welding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan DynamicsWelding Electrode Making Machine By Deccan Dynamics
Welding Electrode Making Machine By Deccan Dynamics
 
Interoperability and ecosystems: Assembling the industrial metaverse
Interoperability and ecosystems:  Assembling the industrial metaverseInteroperability and ecosystems:  Assembling the industrial metaverse
Interoperability and ecosystems: Assembling the industrial metaverse
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
 
Customizable Contents Restoration Training
Customizable Contents Restoration TrainingCustomizable Contents Restoration Training
Customizable Contents Restoration Training
 
Simplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business LoansSimplify Your Funding: Quick and Easy Business Loans
Simplify Your Funding: Quick and Easy Business Loans
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
How to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your BusinessHow to Conduct a Service Gap Analysis for Your Business
How to Conduct a Service Gap Analysis for Your Business
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
 
Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketing
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 
Fundamentals Welcome and Inclusive DEIB
Fundamentals Welcome and  Inclusive DEIBFundamentals Welcome and  Inclusive DEIB
Fundamentals Welcome and Inclusive DEIB
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in Life
 

Liberalization of india (nigam sir)

  • 1. Presentation on “LiberaLization of india” Presented By “Gaurav Patel” Taxila Business School, Jaipur MBA+PGDBM (07877549750)
  • 2. Introduction of Liberalization in India  The Pre-liberalization Era – Prior to 1991  The Post Liberalization Era -- The Present Era. Why Did it Start…….????  In 1991, India Faced a “Balance of Payments Crisis”.  It had to Pledge its Gold to Foreign Countries.  It was a deal with The IMF.  Then PM of India, P V Narsimha Rao Knew that It was time for Some Bold Decision.
  • 3. History of Liberalization in India-:  July 1991,India has taken a series of measures to structure the economy and improve the BOP  The new economic policy introduced changes in several areas.  The policy have salient feature which are-: 1) Liberalization (internal and external) 2) Extending Privatization 3) Globalization of the economy Which are known as “LPG”. (liberalization privatization globalization)
  • 4. Economic Liberalization in India  It means the process of opening up of the Indian economy to trade and investment with the rest of the world.  It means that opening the Door for doing Business to all over the world.  Till 1991 India had a import protection policy wherein trade with the rest of the world was limited to exports.  Foreign investment was very difficult to come into India due to a bureaucratic framework.  After the start of the economic liberalization, India started getting huge capital inflows and it has emerged as the 2nd fastest growing country in the world.
  • 5. The Policies of Liberalization Included the Following…………………………………...  Opening the Gate for International Trade and Investment.  Deregulation. (The removal of government controls from an industry or sector, to allow for a free and efficient marketplace).  Initiation of Privatization.  Tax Reforms.  Inflation Controlling Measure.
  • 6. Impact of Liberalization on Indian Economy-:  Increase in Employment.  Arrival of New Technology or Development of Technology.  Development of Infrastructure.  Identity at World Level.  Increase Our Currency Value (INR).  GDP Growth.  Increase Consumption and Adaptation of New Lifestyle.  Increment of Competition.  Increment in Foreign Investor.
  • 7. Advantages of liberalization  Development of economy without capital investment.  Increase the foreign investment.  Increase the foreign exchange reserve.  Increase in consumption and Control over price.  Reduction in dependence on external commercial borrowings
  • 8. Disadvantages of Liberalization  Loss to domestic units.  Increase dependence on foreign nations.
  • 9. Privatization-:  Privatization means transfer of ownership and/or management of an enterprise from the public sector to the private sector .  Privatization is opening up of an industry that has been reserved for public sector to the private sector.  Privatization means replacing government monopolies with the competitive pressures of the marketplace to encourage efficiency, quality and innovation in the delivery of goods and services.
  • 10. Globalization-:  It Means that opening up of the economy for foreign direct investment by liberalizing the rules and regulations and by creating favorable socio-economic and political climate for global business.  Opening and planning to expand business throughout the world.  Buying and selling goods and services from/to any countries in the world.