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Impact of Liberalization, Privatization & Globalization On Indian Economy
Impact of Liberalization, Privatization & Globalization On Indian Economy
To be Continued
Impact Of Liberalization On
Indian Economy
The low annual growth rate of the economy of India before
1980, which stagnated around 3.5% from 1950s to 1980s, while
per capital 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%.
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.
Financial Liberalization
Capital Account
& Financial Liberalisation
Impact on Government
Budget
Private Flows
Impact on Private
Economy
Official Flows
Domestic Financial
Markets
Foreign Multinationals
Access To Credit
Industrial Performance
Privatization is frequently associated with industrial or serviceoriented enterprises, such as mining, manufacturing or power
generation, but it can also apply to any asset, such as land,
roads, or even rights to water. In recent years, government
services such as health, sanitation, and education have been
particularly targeted for privatization in many countries.
Impact Of Privatization On
Indian Economy
It frees the resources for a more productive utilization.
Privatization Chart