3. Introduction
July 1991,India has taken a series of
measures to structure the economy and
improve the BOP position.
The new economic policy introduced
changes in several areas.
The policy have salient feature which are: -
1.Liberlisation (internal and external)
2.Extending Privatization
3.Globalisation of the economy Which are
known as “LPG”. (libearlisation privatisation
globalisation)
4. Reasons for implementing
LPG
Excess of consumption and expenditure over
revenue resulting in heavy govt. borrowings.
Growing inefficiency on the use of resources.
Over protection to industries.
Mismanagement of the firm and the
economy.
Increase in losses for public sector
enterprises.
Various alteration like poor technological
development, shortage of foreign exchange
and borrowing from abroad.
Low foreign exchange reserves.
Inflation
