During the late 1980s, the Government of India’s expenditure was exceeding its revenue; hence, they approached the World Bank and International Monetary Fund (IMF) for a loan to manage the crisis. 

The major condition for availing the loan was to liberalize and open up the country’s economy for the private sector. India agreed to those conditions and announced the New Economic Policy (NEP) consisting of various economic reforms under three heads, i.e. privatization, globalization and liberalization. 

Privatization:

1. Privatization is the process of transfer of ownership and control of an asset from the government to any private entity.
2. This can be done either by the withdrawal of the government from the management or by the outright sale of public sector companies. 
3. Privatization of the public sector enterprises by selling off part of the equity of Public Sector Enterprises (PSEs) to the public is known as disinvestment. It was undertaken with a point of working on monetary discipline and working with modernization by utilizing private capital and administrative ability. 
4. The public authority visualized that privatization could give solid stimulus to the inflow of FDI.
5. Also, to increase the efficiency of the PSU’s managerial autonomy in decision-making has been provided to them by granting them special statuses such as Maharatnas, Navratnas, and Miniratnas.

Globalization: 

1. It is the process of integration of the economy of a country with the world economy. 
2. It is a complex phenomenon aiming to transform the world into greater interdependence and integration by creating networks and activities transcending economic, social, and geographical boundaries, thus creating a borderless world. 

Outsourcing:

1. In re-appropriating, an organization enlists normal assistance from outside sources, for the most part from different nations, which was recently given inside or from inside the nation (like legal advice, computer service, promotion, and so on) 
2. The development of Information Technology has given a reason to rethink a large number of administrations. 
3. Various administrations, such as voice-based business processes, record keeping, accounting, banking organizations, music recording, film modifying, book record, clinical urging, etc., are being reexamined by associations in developed countries to India. 
4. The low pay rates and accessibility of gifted labour have made India an objective for worldwide rethinking post changes.

World Trade Organisation (WTO): 

1. The WTO was founded in 1995 as the successor organization to the General Agreement on Trade and Tariff (GATT), an earlier global trade organization formed in 1948.
2. GAAT was established in 1948 with 23 countries as the global trade organization to regulate all multilateral economic accords by giving equal opportunities to all countries in the international market for trading purposes.
3. It is expected to establish a rule-based trading regime free of arbitrary restrictions on trade. 
4. And enlarge production and trade of services to ensure optimum utilization of world resources and to protect the environment. 
5. The WTO arrangements cover exchange products just as administrations to work with global exchange (reciprocal and multilateral) through the expulsion of duty just as non-tax hindrances and giving more prominent market access to all member countries.

Indian economy during reforms: An assessment 

The reforms have had a positive impact on the Indian economy, although at the same time have gone through criticism as well. 

Positive impacts of the Reforms:

1. During the reform period, the growth of agriculture has declined. The industrial sector reported fluctuations, and the growth of the service sector has gone up.
2. India saw a fast development in GDP for a very long time. This growth has mainly been driven by growth in the service sector.
3. The kickoff of the economy has prompted a fast expansion in unfamiliar direct speculation and unfamiliar trade practices.  
4. India is currently considered an effective exporter of automobile parts, designing merchandise, IT programming, and materials. 
5. Rising costs have additionally been monitored.

Criticism of the reforms:

1. Growth and Employment: Though the GDP growth rate has increased in the reform period but not created sufficient employment. 
2. Reforms in Agriculture: 

1. Unlike the green revolution, public investment in agricultural infrastructure has fallen.
2. Partial removal of fertilizer subsidy has increased costs for small & marginal farmers.
3. Due to import relaxations, Indian farmers are facing adverse competition from cheaper foreign produce. 
4. Pressure on food prices due to shifting of focus to cash crops, resulting from export orientation. 
5. Reforms in Industry: Industrial growth has also recorded a slowdown, reasons include:
6. Cheaper imports were replacing domestic demand. 
7. Increased competition from imports. Due to it, there is an adverse impact on domestic industry and job generation.
8. Lack of investment in infrastructure such as power facilities. 
9. Developed countries have not provided the same kind of market access as the developing countries. 
10. Disinvestment: The assets of the Public sector enterprises have been undervalued and sold, leading to loss of the government, and the proceeds from such sales have often been used to meet revenue shortfalls instead of further investments. 
11. Reforms and fiscal policies: The reforms led to tax rationalization but are criticized on the following grounds: 
12. Tax rate reduction has not led to increased tax revenue. 
13. Other measures like tariff reduction have reduced the scope to raise the tax from imports.
14. Tax benefits provided for attracting foreign investment have further impacted tax revenue.
15. The limitation of tax revenue has placed limits on Public expenditure, especially in the social sector. 

In a nutshell, globalization and the reforms process have afforded both opportunities and challenges. The reforms were based on an externally advised policy to tackle the crisis and have led to robust growth for the high-income groups and services related to them, instead of the sectors vital to the Indian economy and the Indian people. 

Conclusion:

Privatization, Globalization and Liberalization are the reform processes that have both opportunities and challenges. Privatization is the process of transfer of ownership and management of public sector undertakings from government to private enterprises. Globalization is the process of integration of an economy with the World economy and Liberalization leads to outsourcing of non-core activities from outside the organization.

In order to promote world trade, WTO was established which ensures optimum utilization of resources. 

The reforms were based on an externally advised policy to tackle the crisis and led to robust growth for the high-income groups and services related to them.