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Introduction, Deregulation of Industrial sector, Financial Sector Reforms
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This lesson covers: Introduction, Deregulation of Industrial sector, Financial Sector Reforms.

Roman Saini is teaching live on Unacademy Plus

Roman Saini
Part of a great founding team at Unacademy with Gaurav, Hemesh. Movies, Guitar, Books, Teaching.

Unacademy user
Excellent course ! As I am a new aspirant so many points has not gone clear to me . So please give a brief introduction of terms . Thanks for this excellent video!!!!
Rahul Meena
2 years ago
will try to cover your request from now onwards.
hello.sir... on this largest education platform, there are large no. of unacademy verified teachers and their videos available. So, I need your favour to recommend and suggest which videos is best suited for UPSC CSE...
Collin Kingston
a year ago
Collin Kingston
a year ago
Just follow the Link..Roman Sir has provided the best courses and books
This guy says "O.K" after every sentence in each of his videos making its very irritating
Vishal Mallick
10 months ago
How this "o.k"..irritate...May I know
Vishal Mallick
10 months ago
here you are supposed to learn ...not to show..that what irritate you ...I don't understand that how dump guy like you is going to attempt upsc...
Vishal Mallick
10 months ago
Roman sir is...contributing ...his valuable time just for sake of in upsc preparations...and rather than concentrating on the are criticising his style of teaching....just shame on you....
Pratap Pal
10 months ago
its called feedback , every teacher on unacademy here ask us to rate ,recommend and share , i think you are new here , just watch every teacher they themselves ask us how their lessons can be improved .Here am not criticising him in any way i am following roman sir more than u have spent time scrolling which lessons to watch on the internet over your lifespan :)
thanks sir for such amazing courses I have no words for your contribution but one day I will pay for u r contribution thanks sir u r great,aap jaise log duniya me bahut kam hai jo dusro ke liye jite hai U R REAL IAS OFFICER I SALUTE Y...
Roman Sir , Why can't we set standard margins for PSU like minimum productivity standards so that people working at PSU come out with their true Potential
sir please tell us full list of best unacademy courses for 2019 pre full courses after that we dont need to go for books
  1. Effects Of Liberalization On The Indian Economy Lesson-1 Presented By: Roman Saini

  2. In This Lesson Economic Reforms Introduction Deregulation Of Industrial Sector Financial Sector Reforms

  3. Economic Reforms Since Independence India followed mixed economy blending the elements of market economic system with elements of planned economic(socialist) system. .This approach did not bring fruits since it resulted in variety of rules and laws, which were aimed at controlling and regulating the economy, ended up instead in hampering the process of growth and development. The country did not have a proper consumer oriented market and lacking foreign investments. . In 1980s the government took some economic reforms like abolishing restriction in many sectors, efforts to improve GDP, to increase exports and the regulations on pricing were also put off. .

  4. Economic Reforms Situation during 1980s Even if the economic liberalization policies were undertaken, the country remained in its backward economic state. The government was spending a large share of its income on areas which do not provide immediate returns such as the social sector and defence. Hence there was a need to utilise the rest of its resources in a highly efficient manner. . The Public Sector Units were plagued and income from them were not sufficient to meet the expenditure.

  5. Economic Reforms Hence the government expenditure exceeded its revenue. Moreover, the foreign exchange reserves declined to a level that was not adequate to finance imports for more than two weeks. . The crisis was further aggravated by rising prices of essential goods. In 1991, India met with an economic crisis with respect to its external debt-the government was unable to make repayments on its borrowings from abroad. . All these led the government to introduce a new set of policies which are collectively referred as Economic Reforms

  6. Economic Reforms In simple terms Economic Reforms can be understood by following: O Deregulation Financial Sector Reforms Tax Reforms Reduction in procedures Foreign Exchange Reforms Trade and Investment Policy Reforms O Overall it refers to a country "opening up" to the rest of the world with respect to trade, regulations, taxation and other areas that generally affect business in the country

  7. Economic Reforms Deregulation of Industrial Sector In India, regulatory mechanisms were enforced in several ways. Industrial licensing under which every entrepreneur had to get permission from government officials to start a firm, close a firm or to decide the amount of goods that could be produced. . private sector was not allowed in many industries. some goods could be produced only in small scale industries and controls on price fixation and distribution of selected industrial products.

  8. Economic Reforms .The 1991 reforms removed many of these restrictions. Industrial licensing was abolished for almost all except product categories like alcohol, cigarettes, hazardous chemicals, electronic, aerospace and all types of defense equipment. The industries which are now reserved only for the public sectors are atomic energy generation and railway transport(As of 2016) . Many goods produced by small scale industries have now been dereserved. In many industries, the market has been allowed to determine the prices.

  9. Economic Reforms Financial Sector Reforms This sector includes financial institutions such as commercial banks, investment banks, stock exchange operations and foreign exchange market. . .The financial sector in India is regulated by the Reserve Bank of India (RBI). The main aspect of 1991 reforms is to reduce the role of RBI from regulator to facilitator of financial sector. . This allowed financial sector to take decisions on many matters without consulting the RBI. .

  10. Economic Reforms As a result of reform policies, many private sector banks as well as Indian banks were established. .Foreign investment limit in banks was raised to around 50 per cent. Banks which fulfill certain conditions were allowed to set up new branches without the approval of the RBI .Foreign Institutional Investors (FII) such as merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.