PRSENTED BY:

SOURAV AGRAWAL
SUBHAM MAJHI
SWETA MISHRA
 INTRODUCTION
The Government of India as a part of economic
reforms announced a new industrial policy in July
1991.
• The broad features of this policy were as
follows:
❑ De-Licening.
❑ Entry to Private Sector.
❑ Disinvestment.
❑ Liberalization in Technical Area.
❑ Setting up of Foreign Investment Promotion
Board (FIPB).
❑ Small Scale Industries.
 HIGHLIGHTS OF LPG POLICY

• FOREIGN TECHNOLOGY AGREEMENTS

• MRTP ACT ,1969
• DEREGULATION
• OPPURTUNITIES FOR OVERSEASTRADE
• TAX REFORMS
 Factors which lead to 1991
economic reforms:

▪ Rise in Prices
▪ Rise in Fiscal Deficit
▪ Increase in Adverse Balance of Payments
 LIBERALISATION:-
Liberalisation is the process or means of the elimination of
control of the state over economic activities. It provides a greater
autonomy to the business enterprises in decision-making and
eliminates government interference.
OBJECTIVES:-
▪ To boost competition between domestic businesses
▪ To reduce the debt burden of a country
▪ To reduce the role of public sector in future industrial
development
▪ To develop a global market of a country
▪ Improvement of technology and foreign capital
 IMPACTS OF LIBERALISATION
IN INDIA:-

POSITIVE IMPACT OF
LIBERALISATION:-

1. Free flow of capital

2. Stock market performance
3. Political risk reduced
4. Diversification for investors
5. Impact on agriculture
 NEGATIVE IMPACT OF
LIBERALISATION IN INDIA:-

1. Destabilzation of the economy

2. Technological impact
3. Mergers and acquisitions
4. Impact of FDI IN Banking sector
 PRIVATISATION:
The transfer of ownership, property or business from
the government to the private sector is termed
privatization. The government ceases to be the owner
of the entity or business. The process in which a
publicly-traded company is taken over by a few
people is also called privatization.

OBJECTIVES:-
1. Providing strong momentum to inflow of FDI
2. Increased inflow of FDI improves the financial strength of the economy
3. The efficiency of PSU’s was improved by giving them the autonomy to
make decisions
4. Some companies were given a special category of Navratna and Mini-
Ratna
 IMPACT OF
PRIVATISATION:-

POSITIVE ASPECT:-

1. Improved efficiency
2. Lack of political interference
3. Short term view
4. Shareholders
5. Increased competition
 NEGATIVE ASPECT

1. Natural monopoly
2. Public interest
3. Short term of firm
4. Fragmentation of industries
5. Problem of regulating private
monopolies
 GLOBALISATION

Globalization is the increase in the flow of goods,

services, capital, people, and ideas across
international boundaries, according to the online
course Global Business.
 ADVANTAGES OF GLOBALISATION
IN INDIA:-

❑Increase in employment
❑Increase in compensation
❑High standard of living
❑Extension of market
❑Development of infrastructure
 DISADVANTAGE OF
GLOBALISATION:-

❑Inequality
❑Inflation
❑Threats to global commons
❑Trade Imbalances
❑Unemployment
❑Standardisation
 IMPACT OF GLOBALISATION ON
INDIAN ECONOMY:-

1. Economical impact
2. Cultural effect
3. Political effect
4. Technological changes
 CONCLUSION:-

LPG has accelerated the growth process of the Indian

economy, but it is lopsided. It is not an inclusive growth
process. It is a growth process that does not embrace all the
sectors of the economy. Rather, it is a growth process which
is increasingly relying on 'service sector' of the economy.
The conclusion is inescapable that robust growth still awaits
a solid platform of schools, hospitals, roads, toilets and
sewage systems. Liberalisation unleashed India's
entrepreneurial energies. In doing so, it has vastly magnified
the State's responsibility to supply it with a healthy and
productive workforce.