Lpg policy

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Its about Liberalization privatization and globalization.

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Lpg policy

  1. 1. N.NAVEEN KUMAR LPG POLICY
  2. 2. Objective of LPG Policy
  3. 3. Reasons for LPG policy Fiscal deficit was 5.4% of gross domestic product in 1981-82 which rose up to 8.4% in the year 1990-01. In 1991 amount of interest liabilities rose further to 36.4% of total government expenditure. Country was moving towards debt trap. Mounting “Adverse balance of payment(BOP)”
  4. 4. Reasons for LPG policy (Cont..) Fall in foreign exchange reserve. Rise in prices. Poor performance of public sector undertakings. First Gulf war caused spikes in oil prices which caused a major balance-of –payment crisis for India.
  5. 5. Reasons for LPG policy (Cont..) India asked for $1.8 billion bailout loan from IMF, in return demanded reforms. This New Economic Policy was inaugurated by former prime minister P.V. Narasimha Rao under the guidance his FM Manmohan Singh.
  6. 6. Salient features of LPG-1991
  7. 7. LIBERALIZATION
  8. 8. ECONOMIC REFORMS UNDER LIBERALIZATION
  9. 9. PRIVATIZATION  Privatization is the general process of involving the private sector in the ownership or operations of a state owned enterprise. PRIVATIZATION  outright sale of govt.  Withdrawal of the govt. enterprises ownership & mangt. from mixed enterprises.  The ownership of PSUs is being gradually sold off to pvt. Entrepreneurs.
  10. 10. PRIVATIZATION
  11. 11. Losses due to Privatization
  12. 12. GLOBALIZATION Process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy. Unrestricted flow of goods and services, technology and expertise among different countries of the world.
  13. 13. GLOBALIZATION
  14. 14. Positive impact of LPG Economic activities has picked up and the growth rate of GDP has shown an impressive increase.  Stimulated industrial production. Significant increase in govt. revenues and subsequent decrease in fiscal deficit. Greater flow of goods and services checked inflation rate.
  15. 15. Positive impact of LPG (Cont..) Consumer’s sovereignty has widened. substantial increase in forex reserves. Flow of pvt. Foreign investment increased. India has been recognized as emerging super power. Monopoly markets has been converted into competitive market.
  16. 16. Negative impacts of LPG  Agriculture is totally neglected.  Concentration of growth processes in urban area.  Might be results into Economic colonism.  Consumerism has been increased.  Lopsided growth process.  Cultural erosion.

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