History of liberalization in india

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History of liberalization in india

  1. 1. History of Liberalization in India
  2. 2. 1947 – 1991• After Independence in 1947, India followed socialism as an economic policy• Five major PMs followed this policy: Pandit Nehru Lal Bahadur Shastri Indira Gandhi Morarji Desai Rajiv Gandhi• This was till 24th July 1991
  3. 3. Why did it start?• In 1991, India faced a “Balance of Payments” crises• It had to pledge its gold to foreign countries• It was a deal with the IMF• The then PM of India, P V Narsimha Rao knew it was time for some bold decisions
  4. 4. What did P V Narsimha Rao do?• He consulted Dr Manmohan Singh, the then Finance Minister of India (current PM) and an eminent economist• Dr Manmohan Singh was also of the opinion that if India had to progress, its economic policies must be reformed as per changing times
  5. 5. The policies included the following …• Opening for international trade and investment,• Deregulation,• Initiation of privatization,• Tax reforms,• Inflation-controlling measures
  6. 6. Beyond Party PoliticsIt must be noted that the overall direction of liberalization has since remained the same, irrespective of the ruling party
  7. 7. Main Objective The main objective of the government was to transform the economicsystem from socialism to capitalism so as to achieve high economicgrowth and industrialize the nation
  8. 8. A Market Economy Today India is mainly regarded asa “market economy” today
  9. 9. Present & Future• As of 2009, about 300 million people — equivalent to the entire population of the United States — have escaped extreme poverty• Indian government coalitions have been advised to continue liberalization
  10. 10. Thank You Saurabh Deshpande @saurabhd3108 on twitter

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