The document discusses the economic development of India from 1947 to present. It summarizes that India adopted a socialist model with licensing and restrictions after independence which led to low growth rates of around 3.5% until the 1980s. Liberalization in the 1990s removed many licenses and restrictions, allowing private companies to enter markets. Privatization further shifted control from public to private sectors, accelerating growth. India is now one of the fastest growing economies and on track to be a top economy by 2050. However, critics argue the development model focuses too much on large corporations and imports over job creation and small/medium businesses.

1. LIBERALISTION, PRIVATISATION, GLOBALIZATION
By: Ajeet Kumar Pandey
After Independent in 1947 Indian government have main problem to develop our
economic. The Growth Economics conditions of India in that time were not very
good, because we did not have proper resources for the development, not in terms of
natural resources but in terms of financial and industrial development. At that time
India need the path of economics planning and for that we adopt „Five Year Plan‟
concept of which we take from Russia and feel that it will provide as fast development
like Russia, under the view of the socialistic pattern society. And India had practiced a
number of restrictions ever since the introduction of the first industrial policy
resolution in 1948.
Liberalization:
As we know that those period were known as License Raj. As a result of the
restriction in the past, India‟s performance in the global market has been very dismal;
we have never reached even the 1% in the global market. We have vast natural
resources with high efficiency labor, but after all this we were still contributing with
0.53% till 1992. There were many problems in liberalization, but before that the
definition of liberalization: It is defined as making economics free to enter in the
market and establish there venture in the country.
IMPACT BEFORE LIBERLISATION (1)
The low annual growth rate of the economy of India before 1980, which
stagnated around 3.5% from 1950s to 1980s, while per capita income averaged
1.3%. At the same time, Pakistan grew by 5%, Indonesia by 9%, Thailand by
9%, South Korea by 10% and in Taiwan by 12%.

2. Only four or five licenses would be given for steel, power and communications.
License owners built up huge powerful empires
A huge public sector emerged. State-owned enterprises made large losses.
Infrastructure investment was poor because of the public sector monopoly.
License Raj established the "irresponsible, self-perpetuating bureaucracy that
still exists throughout much of the country" and corruption flourished under
this system
After liberalization India is in second world of development and become the 7 largest
economies which contributed 1.3 trillion in the world‟s GDP. Dr. Manmohan Singh
our former finance minister open the way of free economy in our country which leads
to the great development of our country.
PRIVATIZATION
Privatization is defined as when the control of economic is sifted from public to a
private hand then the situation is known as privatization. India is leading towards
privatization from government raj. As a result it leads in the development of country
500 faster than previous. Now India is in the situation of world fastest developing
economy and may be chance that India will be at top till 2050.
GLOBALIZATION
Globalization describes the process by which regional economies, societies, and
cultures have become integrated through a global network of communication,
transportation, and trade. The term is sometimes used to refer specifically to
economic globalization: the integration of national economies into the international
economy through trade, foreign direct investment, capital flows, migration, and the
spread of technology. However, globalization is usually recognized as being driven by

3. a combination of economic, technological, sociocultural, political, and biological
factors.(2)
LPG Model of Development.
(a) This has a very narrow focus since it largely concentrates on the corporate sector
which accounts for only 10 percent of GDP.
(b) The model bypasses agriculture and agro based industries which are a major
source of generation of employment for the masses. It did not delineate a concrete
policy to develop infrastructure. Financial and technological support, particularly the
infrastructural needs of agro-exports.
(c) By permitting free entry of the multinational corporations in the consumer goods
sector, the model has hit the interests of the small and medium sector engaged in the
production of consumer goods. There is danger of labor displacement in the small
sector if unbridled entry of MNCs is continued.
(d) By facilitating imports, the Government has opened the import window too wide
and consequently, the benefits of rising exports are more than offset by much greater
rise in imports leading to a larger trade gap.
(e) Finally the model emphasizes a capital intensive pattern of development and there
are serious apprehensions about its employment-potential. It is being made out that it
may cause unemployment in the short run but will take care
1) Book Dreaming with BRIC 2050 by “Goldman sach”
2) Bhagwati, Jagdish (2004). In Defense of Globalization. Oxford, New York: Oxford University Press.