The document summarizes India's New Economic Policy of 1991. It introduced major economic reforms to address issues like high fiscal deficit, inflation, poor performance of public sector enterprises, and declining foreign exchange reserves. The reforms included liberalization, privatization and globalization (LPG model). Key aspects were reducing licensing, opening sectors to private/foreign investments, lowering import tariffs and ending export restrictions. The goal was to increase competition and make the Indian economy more efficient and integrated globally.
This presentation explains the conditions which led to the introduction of 1991 economic reforms of India, the key features of the reforms and the impact it created on Indian economy.
Macro-economic stabilisation and structural adjustment in India (1991)Antara Chakrabarty
These slides mainly give an insight into the major macroeconomic stabilization and structural adjustments that were made in India during severe financial crisis of 1991. It discusses the situation sector-wise and provides with a detailed glossary of important terms towards the end of the slide-show.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
This presentation explains the conditions which led to the introduction of 1991 economic reforms of India, the key features of the reforms and the impact it created on Indian economy.
Macro-economic stabilisation and structural adjustment in India (1991)Antara Chakrabarty
These slides mainly give an insight into the major macroeconomic stabilization and structural adjustments that were made in India during severe financial crisis of 1991. It discusses the situation sector-wise and provides with a detailed glossary of important terms towards the end of the slide-show.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
Foreign capital inflow in india- analysis , impact , measure , wayforwardAman Sindhwani
Foreign Investment In India ,Need for foreign capital, factors affecting foreign Inflows , Capital Flows in India , impact , Measures and a way forwards
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
Foreign capital inflow in india- analysis , impact , measure , wayforwardAman Sindhwani
Foreign Investment In India ,Need for foreign capital, factors affecting foreign Inflows , Capital Flows in India , impact , Measures and a way forwards
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
Libralization, Privatization and GlobalizationKuneeka
India made LPG reforms in 1991. LPG reforms are also known as liberalisation, privatisation and globalisation reforms. They have transformed the way India as an economy works and opened the country up to the world for trade and commerce.
Get to know more about with the help of above PDF.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
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The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
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Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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What price will pi network be listed on exchangesDOT TECH
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US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
2. • Meaning of Economic Reforms
• Need of Economic Reforms
• New Economic Policy
• Liberalisation
• Privatisation
• Globalisation
• Demonetisation
• Goods and Service Tax (GST)
LEARNING OBJECTIVES
By Priyanka Chhabra
3. MEANING OF ECONOMIC REFORMS
• It refers to a set of economic policies
directed to accelerate the pace of
growth and development.
• It refer to the fundamental changes
that were launched in 1991 with the
plan of liberalizing the economy and
to quicken its rate of economic
growth.
• The Narasimha Rao Government, in
1991, started the economic reforms in
order to rebuild internal and external
faith in the Indian economy.
By Priyanka Chhabra
4. • The reforms intended at bringing in larger
cooperation of the private sector in the growth
method of the Indian economy.
• Policy changes were proposed with regard to
technology up gradation, industrial licensing,
removal of restrictions on the private sector,
foreign investments and foreign trade.
• To put it in other words, “Economic reforms”
normally indicates deregulation or at times to
decrease in the size of government, to eliminate
deformities caused by management or the
presence of administration, rather than current or
raised regulations or government plans to lessen
perversions created by market failure.
By Priyanka Chhabra
5. NEED OF ECONOMIC REFORMS
Poor performance of the public sector
• Public sector was given an important role
in development policies during 1951-
1990.
• However the performance of the majority
of public enterprises was disappointing.
• They were incurring huge losses because
of inefficient management.
By Priyanka Chhabra
6. Inflationary pressure
• There was a consistent rise in
the general price level of
essential goods in the economy
due to increase in money supply
and shortage of essential goods.
• Money supply was increased
owing to borrowings by the
government to cope with fiscal
deficit.
• To control inflation, a new set of
policies were required
By Priyanka Chhabra
7. Huge debts on government
• Government expenditure on
various developmental works
was more than its revenue from
taxation etc.
• As a result, the government
borrowed money from banks,
public and international financial
institutions like IMF etc.
• Higher Fiscal Deficit indicates
poor financial health of the
economy and triggers inflation.
By Priyanka Chhabra
8. Adverse BoP or Imports exceeded Exports
• Imports grew at a very high rate without
matching the growth of exports.
• Government could not restrict imports
even after imposing heavy tariffs and
fixing quotas.
• On the other hand, Exports were very less
due to the low quality and high prices of
our goods as compared to foreign goods.
By Priyanka Chhabra
9. Fall in Foreign Exchange Reserves
• Foreign exchange (foreign currencies)
reserves, which government generally
maintains to import petrol and other
important items, dropped to levels that
were not sufficient for even a fortnight.
• The government was not able to repay
its borrowings from abroad.
• The situation became so grave that the
government had to mortgage country’s
gold reserves with the World Bank to
discharge its debt obligations.
By Priyanka Chhabra
10. Inefficient Management
• The government was not able to
generate sufficient revenues
from internal sources
• Government’s expenditures
were large enough than its
revenues
• Borrowings were done to fulfill
consumption needs.
By Priyanka Chhabra
12. Terms and conditions of world bank and IMF
India received financial help of $7 billion from
the World Bank and IMF on an agreement to
announce its New Economic Policy i.e.
• To remove restriction on Private sector
• To reduce role of government
• To remove trade restrictions
By Priyanka Chhabra
14. THE NEW ECONOMIC POLICY (NEP)
• The New Economic Policy was announced in July
1991
• Its aim was to create a more competitive
environment in the economy and remove the
barriers to entry and growth of firms.
• Measures:
• Stabilization Measures
• Short term
• Increase forex reserve
• Control inflation
• Structural Reform Measures
• Improve the efficiency of economy
• Increase international competitiveness
By Priyanka Chhabra
17. COMPONENTS OF NEP
• The policy of LIBERALISATION (L) in
place of LICENSING (L) for the
industries and trade
• The policy of PRIVATISATION (P) in
place of QUOTAS (Q) for the
industrialists
• The policy of GLOBALISATION (G)
in place of PERMITS (P) for exports
and imports
• Thus LPG replaced LQP in 1991By Priyanka Chhabra
19. LIBERALISATION
• It means removal of entry and growth
restrictions on the private sector.
• In other words, it means freedom of the
producing units from direct or physical
controls imposed by the government.
• It led to removal of industrial licensing
system, import license, forex control,
restriction on investment etc.
• These controls had given rise to
corruption, undue delays and
inefficiency. By Priyanka Chhabra
20. • Liberalisation involves deregulation and
reduction of government controls and greater
autonomy of private investment, to make
economy more competitive.
• Economic Reforms taken by the Government:
• Industrial Sector Reforms
• Financial Sector Reforms
• Tax Reforms
• Foreign Exchange Reforms
• Trade and Investment Policy Reforms
• The purpose was:
• To unlock the economic potential of the
country by encouraging private sector and
MNCs
• To introduce much more competitionBy Priyanka Chhabra
22. INDUSTRIAL SECTOR REFORMS
24 / July / 1991
Reduction in Industrial Licensing
•Licensing was reduced to only 5
industries i.e. liquor, cigarette, defence
equipment, industrial explosives and
dangerous chemicals.
• No license was required for expansion
or establishments of new units.
By Priyanka Chhabra
24. Decrease in role of PSUs
• Under the new industrial policy, the
number of industries reserved for
PSU was reduced from 17 to 8
• In 2010-11, the number of industries
was reduced merely to two i.e.
Atomic Energy and Railways
By Priyanka Chhabra
25. De-reservation under SSI
• Production areas which earlier were
reserved for SSI were de-reserved.
• Capital investment for SSI has been
increased to Rs. 1 crore
• Prices was determined by the forces
of market
By Priyanka Chhabra
26. MRTP Act
•Monopolies and Restrictive Trade
Practices Act, 1969
•The act aims to prevent concentration
of power, provide for control of
monopolies and protect consumer
interest.
By Priyanka Chhabra
28. FINANCIAL SECTOR REFORMS
Change in role
of RBI
Establishment
of Private
Sector
FDI & FII in
Private Banks
Freedom to
set up new
branches
By Priyanka Chhabra
30. FISCAL REFORMS
• It is related to the revenue and expenditure of the
government.
• It refers to reforms in government’s taxation and public
expenditure policies.
• It seeks to achieve stability in the economy by
managing the revenue and expenditure of the
government
• Tax reforms are the principal component of fiscal
reforms
• Taxes are classified into:
• Direct Taxes: here the burden cannot be shifted
onto others. Eg: Income Tax, Corporate Tax
• Indirect Taxes: here the burden can be shifted
onto others. Eg: GST
By Priyanka Chhabra
32. • Following Tax Reforms were introduced:
• Reduction in Taxes as high tax rates
were an important reason for tax
evasion.
• Introduction of GST in March, 2017 was
another reform in indirect taxes to
facilitate establishment of common
national market for goods and
commodities.
• Procedure for tax payment have been
simplified.
By Priyanka Chhabra
33. EXTERNAL SECTOR REFORMS
• It includes Foreign Exchange Reforms and
Foreign Trade Policy Reforms.
• Foreign Exchange Reforms were
introduced in 1991 with the devaluation
of Indian rupee against foreign currency.
• To overcome BoP crisis, rupee was
devalued so as to increase inflow of Forex.
• As a result, market forces of D& S
determined the exchange rate.
By Priyanka Chhabra
34. • Foreign Trade Policy or Trade and
Investment Policy Reforms underwent a
substantial change.
• Before 1991, lot of restrictions were
imposed on imports which were removed as
it reduced the efficiency and
competitiveness of domestic industries.
• These reforms were initiated:
• To increase competition
• To promote foreign investment
• To promote efficiency
By Priyanka Chhabra
36. DEVALUATION
• It implies lowering the value of own
currency in relation to other currencies of
the world.
• As a reason, US dollar can be exchanges
for more rupees than before.
• Eg: 1 $ = 70 Rs. 1 $ = 75 Rs.
• Implying that a US dollar can but more
goods in the Indian Market
• This will increase forex supply in Indian
Economy as devaluation leads to increase
in Exports and decrease in ImportsBy Priyanka Chhabra
38. Liberalisation is to facilitate
integration of the Indian
market with the global
market with the view to
achieving growth through
competition rather than
protection.
By Priyanka Chhabra
39. LIBERALISATION v/s LAISSEZ-FAIRE
• Laissez faire is a system in which there is no
intervention by the state in the functioning
of an economy. Role of govt is nothing
beyond being a night watchman of the
country.
• Liberalisation implies a situation wherein
the government allows greater degree of
freedom and flexibility to the private
entrepreneurs in matters relating to
allocation of resources. Thus, it does not
exclude government’s intervention in the
economy. By Priyanka Chhabra
41. PRIVATISATION
• It is the process of involving the private
sector in the ownership or operation of a
state owned enterprises.
• In other words, it means transfer of
ownership, management and control of
public sector enterprises to the
entrepreneurs in the private sector.
• It implies gradual withdrawal of govt
ownership and greater role of private sector
in the economic activities of the country.
By Priyanka Chhabra
42. • It can be done in two ways:
• Outright sale of govt enterprises to the
private entrepreneurs i.e. transfer of
ownership
• Through disinvestment
• The purpose of privatization was mainly
to improve financial discipline and
facilitate Modernisation.
By Priyanka Chhabra
43. DISINVESTMENT
• It is a policy instrument to promote
privatization.
• It occurs when govt sells off its share capital of
PSUs to the private investors.
• Argument in favor of disinvestment is same as
that of privatization.
• It is taken as a remedial measure to improve
production and managerial efficiency as well as
to facilitate Modernisation
• It is also used as a means to manage fiscal
deficit by the govt By Priyanka Chhabra
44. NEED FOR PRIVATISATION
• Journey of PSU from 1951-1990 was remarkable.
• It led to the structural transformation of Indian economy.
• PSUs gave us Navratnas (nine jewels of the Indian
industry)
• Gradually most PSUs turned into as social dead weight
and their mounting losses became unsustainable
• Leakage, pilferage , inefficiency and corruption had
become so rampant in PSUs that their privatisation was
considered as their only remedy
• However, Navratnas were to be retained as Public sector
enterprises and it was decided to upgrade their
functional freedom with a view to increase their strength.
By Priyanka Chhabra
45. NAVRATNAS
• It refers to nine such profit making companies
which are compared with nine courtiers in the
court of King Vikramaditya who were men of
eminence and rare wisdom.
• These nine industries are:
• ONGC
• IOC
• BPCL
• SAIL
• BHEL
• IPCL
• VSNL
• NTPC
• HPCL By Priyanka Chhabra
47. • However with the passage of time, Navratna status was accorded to other
industries as well like MTNL, Oil India Limited etc.
• In all 16 industries have acquired this status so far.
By Priyanka Chhabra
48. MAHARATNAS
• Started in 2009
• Coal India Ltd
• IOC Ltd
• NTPC
• ONGC
• SAIL
• BHEL
• GAIL
• BPCL
By Priyanka Chhabra
49. As on 13 Sept 2017, there
were 8 Maharatnas, 16
Navratnas and 74 Miniratnas
By Priyanka Chhabra
50. Reduction in Budget deficit
Competitive environment
Better managerial efficiency
Quick decision making
Promotes consumer
sovereignty
Profit oriented decision
Increase in employment
Favour Social welfare neglected
Lop-sided economic
development
Concentration of economic
power
Rise in level of
unemployment
Against
By Priyanka Chhabra
52. GLOBALISATION
• It means integrating the economy of a country
with the economies of other countries under
conditions of free flow of trade and capital
across borders.
• It is generally understood as integrating the
national economy with the world economy
through removal of barriers on international
trade and capital movements.
• It is a set of various policies that aims to
transform the world towards greater
interdependence and integration.
• It aims to create a borderless world.By Priyanka Chhabra
54. It is defined as a process associated with
increasing openness, growing economic
interdependence and deepening economic
integration in the world economy.
By Priyanka Chhabra
55. • Globalisation is the outcome of the
policies of Liberalisation and
Privatisation
• Because of Globalisation, there will be
unrestricted flow of goods and
services, technology and expertise
between India and RoW
• It is expected that capital and
technology will flow from the
developed countries of the world
towards India.
By Priyanka Chhabra
56. STRATEGIES ADOPTED FOR GLOBALISATION
• In 47 high priority industries, FDI to the extent
of 100% has been allowed without any
restrictions.
• FEMA has been enforced
• All restrictions and control on foreign trade
have been removed. Open competition is
encouraged.
• Tariff and non-tariff barriers have been
withdrawn on most goods traded between
India and RoW
By Priyanka Chhabra
57. • Rupee was devalued in 1991 by nearly 20% which
stimulated exports, discouraged imports and
raised the influx of foreign capital.
• Union Budget 1992-93 made Indian rupee
partially convertible for
• Import and export of G & S
• Payment of interest or dividend of investment
• To meet family expenses
• Export-Import policy (1992-97) was announced to
remove all restrictions and controls on the
external trade
• Custom duty has been modified i.e. it has been
reduced from 250% to 10% in 2007-08 budget.
By Priyanka Chhabra
58. Partial convertibility refers to the
freedom to convert domestic
currency into foreign currency and
vice versa for restricted purposes.
In India, there is partial
convertibility as there are
restrictions on capital account
transactions, though the rupee is
fully convertible in the current
account
By Priyanka Chhabra
59. Favour
Greater access to global market
Advanced technology
Better future prospects for LSI
Against
More beneficial for developed
countries
Compromises with the welfare of
poor people
Increases economic disparities
By Priyanka Chhabra
61. OUTSOURCING
• It is an important outcome of the process of
Globalisation.
• It refers to contracting out some of the activities to a
third party which were earlier performed by the
organisation.
• In simple words, it refers to a system of hiring business
services from the outside world.
• Eg: call centres, security services, educational services
etc
• India is emerging as an important destination of
outsourcing particularly, BPO, because of two reasons:
• Availability of cheap labour
• A revolutionary growth of IT industry in India
By Priyanka Chhabra
63. WTO
• In 1948 GATT was established with 23 countries to
administer all multilateral trade agreements by
providing equal opportunities to all countries in the
international market for trading purpose.
• On 1st January 1995 WTO came into existence as the
successor of GATT.
• WTO is a powerful body that aims at making the whole
world a big village where goods and services can flow
without any barriers.
• At present, there are 164 member countries of WTO
• Roberto Azevedo is the Director General of WTO
By Priyanka Chhabra
64. FUNCTIONS OF WTO
• To facilitate international trade by removing tariff
and non tariff barriers.
• To ensure optimum utilization of world resources.
• To protect the environment.
• To enlarge production and trade of services.
• To provide a platform where member countries
can decide future strategies.
• To establish a regime where nations cannot place
arbitrary restrictions on trade.
By Priyanka Chhabra
65. INDIA AND WTO
• India has been in forefront of framing fair global
rules, and regulations
• India has kept its commitments of LPG policies
made in WTO
By Priyanka Chhabra
68. POSITIVE ASPECTS OF LPG POLICIES
• Increase in the rate of Economic
Growth
• Inflow of Foreign Investment
• Rise in Forex Reserve
• Rise in Exports
• Control on Inflation
• Increase in role of Private Sector
By Priyanka Chhabra
70. NEGATIVE ASPECTS OF LPG POLICIES
• Growing unemployment
• Removal of subsidy from Agriculture
• Liberalization and reduction in import duties
• Shift towards cash crops
• Reduction of Public Investment
• Non-tariff barriers by Developed countries
• Ineffective disinvestment policy
• Ineffective tax policy
• Spread of consumerism
• Unbalanced growth
By Priyanka Chhabra
