Six Thinking Hats is a system which describes a tool for group discussion and individual thinking involving six colored hats. "Six Thinking Hats" and the associated idea parallel thinking provide a means for groups to plan thinking processes in a detailed and cohesive way, and in doing so to think together more effectively. In the further slides me and my team members will be explaining L.P.G (i.e. Liberalization, Privatization and Globalization) using the Six Thinking Hat Technique. The team would be more focusing on India and brushing up some parts of the world in our presentation.

1. RITWICK
SYRIL
ARPIT
SHIVANGI ADITI
ISHASONIKA
SOUMYA
SANDEEP C

4. IMPACTS (Pre LPG)
 Low annual growth rate
• Stagnated around 3.5% (1950-1980)
• Per capita income- 1.3%
 License Limit – Build Huge Empires
 State owned enterprise made large losses
 Public sector monopoly
 License Raj
• Irresponsible, Self-perpetuating bureaucracy
• Corruption Flourished
 No Free market demand production
 Production- Government regulated
 Issues with import and Export outside the

5. source: DATABASE OF INDIAN ECONOMY

6.  Foreign Tech Agreements
 Foreign Investment
 MRTP Act (1969)- Amended
 Industrial Licensing
 Deregulation
 Beginning of Privatization
 Opportunities for overseas trade
 Steps to regulate inflation
 Tax Reforms
 Abolition of License- Permit Raj
IMPACTS (Post LPG)

7. LPG PROCESS REFORMS 1991
 Fiscal Reforms:
Reduction in fiscal deficit by nearly two percentage points of GDP from 8.4 percent in
1990-91 to 6.5 percent in 1991-92.
 Monetary and Financial Sector Reforms:
 Reduction in Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR).
 Greater competition among public sector, private sector and foreign banks and
elimination of administrative constraints.
 Reforms in Capital Markets:
The Securities & Exchange Board of India (SEBI) which was set up in 1988 was given
statutory recognition in 1992

8. LPG PROCESS REFORMS 1991(...Continued)
 Industrial Policy Reforms:
 Industrial licensing was abolished for all projects except in 18 industries.
 The public sector units were provided greater autonomy .
 Trade Policy Reforms:
Positive list of freely importable items replaced by a limited negative list .
 Promoting Foreign Investment:
 In 1991, the government granted permission for Foreign Direct Investment (FDI) .
 Foreign Investment Promotion Board (FIPB) was set up to negotiate with international firms
and approve direct foreign investment in select areas.
 Steps were also taken from time to time to promote Foreign Institutional Investment (FII) in
India.

9.  Education and Employment.
 International Trade.
 Improves efficiency and profitability.
 Improves the quality of decision
making.
 Domestic production is boosted.
ADVANTAGES OF LPG

10. CRITICISM OF LPG
 Problems in implementation
 Decline in demand for domestic products
 Jobless growth
 Undervaluation of public assets
 Widening gap between the rich and the poor

11. SCOPE OF INNOVATION
Liberalization Privatization Globalization
• Fundamental Laws
• Revolutionized Indian
Indian Economic
System
• Job Creation
• Diversified Market
Structure
• Technical expertise
(IT Boom)
• Technological
Restructuring
• Foreign Policy Reforms
Reforms
• Magnitude of MNCs
MNCs
• Service Sector
• Efficiency
• Share Market
• Corporate Farming
• Education
Infrastructure
• Growth of Cities
• Demographic Impacts
Impacts
• KPO & BPO
• Small Scale Industries
Industries
• Expansion of the
Creative Influences
(Abstract)
• Sustainable
Development.

12. MAKE IN INDIA- The story so far
 FDI inflow has increased to 29%.
 Jan, 2015-Spice Group started a mobile phone manufacturing unit.
 Feb,2015: Huawei opened a new R&D campus
 August, 2015: Lenovo began manufacturing smart phone in Chennai.
 Nov 2015: Railways inks pact with ALSTOM and GE transport.
 October 2015: Boeing boost for Make in India.

13. JAN DHAN YOJANA- Progress report

14.  Self reliance and self sustenance
 Focus on twin pillars
 Spending to be increased in all the sectors
 Corruption free administration
 Commitment of all concerned
 Long way to go
CONCLUSION