LIBERALISATION AND GLOBALISATION (MEANING AND PROCESSES)
LIBERALISATION contains two components.
-Allow the private sector to run those activities which were restricted earlier only to public sector.
-Relaxation of rules and regulations which were restricted to the growth of private sector.
PEOCESSES:
-Private sector has been allowed to produce all the goods except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace and drugs and pharmaceuticals.
-Industries reserved for public sector has been reduced from 17 to 3.
-Private sector can also enter in to core industries like iron and steel, electricity, air transport, shipbuilding, heavy machinery and some defence goods.
LIBERALISATION contains two components.
-Allow the private sector to run those activities which were restricted earlier only to public sector.
-Relaxation of rules and regulations which were restricted to the growth of private sector.
PEOCESSES:
-Private sector has been allowed to produce all the goods except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace and drugs and pharmaceuticals.
-Industries reserved for public sector has been reduced from 17 to 3.
-Private sector can also enter in to core industries like iron and steel, electricity, air transport, shipbuilding, heavy machinery and some defence goods.
The private sector has been freed from many regulations such as
(a) licensing
(b) permission to import raw materials
(c) regulation on price and distribution and
(d) restriction on investment by large business companies.
GLOBALISATION : Integrating the Indian economy with the world economy.
-Many producers from outside the country can sell their goods and services in India.
-India can also sell its goods and services to other countries.
-Globalisation facilitates those who have capital to establish enterprises in India, produce goods for sale within the country or export them.
-Entrepreneurs from India also can go and invest in other countries.
-Not only the movement of capital but also the movement of people takes place.
-Exchange of capital, technology and experience take place between the various countries of the world.
-Govt has removed restrictions on import of goods, reduced taxes on imported goods and encouraged investors from abroad to invest in India.
LIBERALISATION AND GLOBALISATION IN INDIA- AN EVALUATION:
Visible changes-
(a) Better services in the communication sector, such as telephone facilities, availability of electronic goods such as TV etc at low prices.
(b) Emergence of food processing companies for various types of food and drinks.
Invisible Changes
(a) India’s share in trade of goods and services in the world has increased, though a bit slow.
(b) Investments from other countries (Foreign Direct Investment) to produce goods and services in India has increased.
(c) The price rise has slowly declined from 12% in 1990-91 to 5% in late 1990s.
(d) The new policies have generated employment though not sufficient to meet the increasing requirement of the Country.
(e) Industrial growth is not up to the expected level.
(a) licensing
(b) permission to import raw materials
(c) regulation on price and distribution and
(d) restriction on investment by large business companies.
GLOBALISATION : Integrating the Indian economy with the world economy.
-Many producers from outside the country can sell their goods and services in India.
-India can also sell its goods and services to other countries.
-Globalisation facilitates those who have capital to establish enterprises in India, produce goods for sale within the country or export them.
-Entrepreneurs from India also can go and invest in other countries.
-Not only the movement of capital but also the movement of people takes place.
-Exchange of capital, technology and experience take place between the various countries of the world.
-Govt has removed restrictions on import of goods, reduced taxes on imported goods and encouraged investors from abroad to invest in India.
LIBERALISATION AND GLOBALISATION IN INDIA- AN EVALUATION:
Visible changes-
(a) Better services in the communication sector, such as telephone facilities, availability of electronic goods such as TV etc at low prices.
(b) Emergence of food processing companies for various types of food and drinks.
Invisible Changes
(a) India’s share in trade of goods and services in the world has increased, though a bit slow.
(b) Investments from other countries (Foreign Direct Investment) to produce goods and services in India has increased.
(c) The price rise has slowly declined from 12% in 1990-91 to 5% in late 1990s.
(d) The new policies have generated employment though not sufficient to meet the increasing requirement of the Country.
(e) Industrial growth is not up to the expected level.