Simply speaking, privatisation means permitting the private sector to set up industries which were previously reserved for the public sector. In privatisation, the Govt. The managers cannot work independently. Production capacity remained under-utilized.
Discuss the pros and cons of Liberalisation, Privatisation and Globalisation LPG in developing and developed countries. Outline the socio — economic issues arising out of LPG in India by citing suitable examples.
Similarly, the big business houses were unable to start new enterprises because the Monopolies and Restrictive Trade Practices MRTP Act had prescribed a ceiling on asset ownership to the extent of Rs.
In case a business house had assets of more than Rs. It was believed that on account of the rise in prices this limit had become outdated and needed a review.
The major purpose of liberalisation was to free the large private corporate sector form bureaucratic controls. It, therefore, started dismantling the regime of industrial licensing and controls. On April 14,the Cabinet Committee on Economic Affairs decided to remove three more items form the list of 18 industries reserved for compulsory licencing.
The three items were: In the case of cars and white goods which include refr4igerators, washing machines, air-conditioners, microwave ovens etc.
In the case of cars and white goods, the basic purpose of de-reservation was to increase investment in industries in procuring cars and white goods so that the demand of the large middle class ranging from to million can be satisfied.
The list of industries in which industrial Licensing is compulsory: Distillation and brewing of alcoholic drinks 2. Animal fats and oils 5.
Cigars and Cigarettes of tobacco and manufactured tobacco substitutes 6. Petroleum other than crude and its distillation products 7. Coal and Lignite 8. Paper and newsprint except bagasse-based units 9.
Tanned or dressed fur skins Raw hides and skins, leather, chamois leather and patent leather Plywood, decorative veneers, and other wood based products Asbestos and asbestos-based products Electronics, aerospace and defense equipment: Globalisation is considered to be an important element in the reforms package.
It has four parameters: They insist that the developing countries accept their definition of globalisation and conduct the debate on globalisation within the boundaries set by them.
But several economists and social thinkers in developing movement is to integrate the world into one global village, then the four the component of unrestricted movement of labour cannot be left out.
To purpose the objective of globalisation, the following measures have been taken: There has been a considerable reduction in import duties during the last years.
The maximum rate was reduced from 5 years. Tariffs on imports of raw materials and manufactured intermediates have also been reduced. Besides this, the government has attempted to rapidly dismantle quantitative restriction on imports and exports.
It has also undertaken adjustment of exchange rate so as to remove over-valuation of currency.An Overview Of Liberalization, Privatization and Globalization Indian economy had experienced major policy changes in early s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive.
Impact Of Lpg On Indian Economy. What Are The Impact Of Globalization And Liberalization On Business. Liberalization And Its Impact On Small Scale Industries. Globalisation On Indian Society Globalization And. Globalization Liberalisation And Privatisation In India Words. For an understanding of liberalization, privatization and globalization or LPG Model in the Indian context, it is essential to detail out the eighth five-year plan, since it was the inception of a host of LPG policy that was instrumental in allowing India to unshackled its economy and engage in global trade and commerce.
Article explains the reason behind the major development of India i.e. Globalization. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors.
The process of globalisation through liberalisation and privatisation policies has produced positive as well as negative results both for India and other countries. Here we detail about the six benefits of liberalisation and globalization of Indian economy.
Benefit 1# Shift from Import-Substitution to Export-Led Growth Strategy: The failure of import substitution strategy of industrial growth to achieve sustained growth forced India and other developing countries to pursue export-led growth strategy.