10-04-2017, 07:52 PM
India's economy had undergone major policy changes in the early 1990s. This new model of economic reforms is commonly referred to as LPG or the model of liberalization, privatization and globalization. The main objective of this model was to make India's economy the fastest developing economy in the world with capabilities that help match the world's largest economies. The chain of reforms carried out with respect to the business, manufacturing and financial services industries was aimed at raising the country's economy to a more competent level. These economic reforms have significantly influenced the overall economic growth of the country.
Liberalization
Liberalization refers to the decline of government regulations. Economic liberalization in India denotes the continuing financial reforms that began on July 24, 1991. Shortly after independence, the time period was known as the Raj Leave. As a result of the restriction in the past, India's performance in the global market has been very regrettable; It never reached even 1% in the global market. India has vast natural resources with high efficiency labor, but after all this it still contributed 0.53% to 1992.
Privatization
India is leading towards the privatization of the Raj government. As a result, lead in the development of the country 500 faster than the previous. Now India is in the position of the fastest developing economy in the world and may be the opportunity that India will be at the top until 2050.
Privatization was characterized by the following characteristics:
The new set of economic reforms aimed at giving greater prominence to the private sector in the process of nation building and a reduced role for the public sector.
To achieve this, the government redefined the role of the public sector in the 1991 New Industrial Policy.
The purpose of the agreement, according to the government, was mainly to improve financial discipline and facilitate modernization.
It was also noted that private capital and management capacities could be effectively used to improve the performance of PSUs.
The government has also made attempts to improve the efficiency of the UPM by giving them autonomy in making management decisions.
Globalization:
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 diffusion of technology. However, globalization is generally recognized as driven by a combination of economic, technological, sociocultural, political and biological factors.
The globalization of the Indian economy contained the following characteristics:
Globalization is the result of the liberalization and privatization policies already initiated by the Government.
In general, globalization is understood as the integration of the country's economy with the world economy. It is a complex phenomenon to understand and apply in practice.
It is the result of a set of policies aimed at transforming the world towards greater interdependence and integration.
It involves the creation of networks and activities that transcend economic, social and geographical boundaries.
Globalization implies a greater level of interaction and interdependence between the various nations of the global economy.
The physical geographic divide or political boundaries are no longer a barrier to a commercial company being able to serve a customer in a distant geographic market around the world.
Liberalization
Liberalization refers to the decline of government regulations. Economic liberalization in India denotes the continuing financial reforms that began on July 24, 1991. Shortly after independence, the time period was known as the Raj Leave. As a result of the restriction in the past, India's performance in the global market has been very regrettable; It never reached even 1% in the global market. India has vast natural resources with high efficiency labor, but after all this it still contributed 0.53% to 1992.
Privatization
India is leading towards the privatization of the Raj government. As a result, lead in the development of the country 500 faster than the previous. Now India is in the position of the fastest developing economy in the world and may be the opportunity that India will be at the top until 2050.
Privatization was characterized by the following characteristics:
The new set of economic reforms aimed at giving greater prominence to the private sector in the process of nation building and a reduced role for the public sector.
To achieve this, the government redefined the role of the public sector in the 1991 New Industrial Policy.
The purpose of the agreement, according to the government, was mainly to improve financial discipline and facilitate modernization.
It was also noted that private capital and management capacities could be effectively used to improve the performance of PSUs.
The government has also made attempts to improve the efficiency of the UPM by giving them autonomy in making management decisions.
Globalization:
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 diffusion of technology. However, globalization is generally recognized as driven by a combination of economic, technological, sociocultural, political and biological factors.
The globalization of the Indian economy contained the following characteristics:
Globalization is the result of the liberalization and privatization policies already initiated by the Government.
In general, globalization is understood as the integration of the country's economy with the world economy. It is a complex phenomenon to understand and apply in practice.
It is the result of a set of policies aimed at transforming the world towards greater interdependence and integration.
It involves the creation of networks and activities that transcend economic, social and geographical boundaries.
Globalization implies a greater level of interaction and interdependence between the various nations of the global economy.
The physical geographic divide or political boundaries are no longer a barrier to a commercial company being able to serve a customer in a distant geographic market around the world.
