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Liberalisation, Privatisation and Globalisation
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This is the third chapter in the course. It focuses on the reform policies that India adopted in 1991. It also looks at the mechanism through which refreform policies were introduced. This lesson looks at the impact of globalisation to the India. This lesson also focuses on the impact of reform process in various sectors.

Apurva Jha
B.Sc (EMS), MA(Applied Economics), Public speaker, nail art designer. Reading books, listening music, singing and watching movies.

U
Unacademy user
Sir, Malacca straits are between Malaysia and Sumatra Island(Indonesia).
Sanyam Kapila
2 years ago
Watch this new course The Hindu Daily Vocabulary Analysis https://unacademy.com/lesson/8th-november-2017-the-hindu-daily-vocabulary-analysis/ZQ330CRH
Please make class 12th NCERT summery. This lessons helped a lot... and way of teaching is very good. Economy was my nightmare but now it seems easy :)
Mam it was awesome. .....if possible plz send notes on the same topic plz plz plz
Hello Apurva, I had a query ; since India is facing current account deficit for last subsequent quarters so in such a case can devaluing currency help in boosting exports? AND VERY NICE EXPLANATION of concepts :D
Dinesh Singh
2 years ago
Devaluing currency surely boost the exports, but for a better economy currency should be stable.. agar devalue kr denge toh imports mehenge ho jaayenge... usse ho skta hai ki deficit aur barh jaaye... toh upar neeche pe nahi, stable krne waali policy is good.
Mam, What is the difference between Devaluation and Depreciation ? and How does Devaluation makes exports cheaper ?
Chakshu Jain
3 years ago
I googled mam. Suppose you live in the US. The Indian rupee drops from USD/INR=40 to USD/INR =60. Karbonn makes a cellphone in India and decides a price of 12000 rupees. To you, an American, the price has dropped from $300 to $200. Hence the drop of rupee incentivises you to buy Indian goods. Is it correct ?
Jayendra Singh
3 years ago
what u had explained is an example of weakening of India rupee against Dollar which can be cause due to depreciation or devaluation. Depreciation :- decrease in rupee value due to market force in Forex market. Devaluation :- decrease in rupee value by government not due to Forex market.
Akshay Pathade
2 years ago
https://www.youtube.com/watch?v=nkuaXOWCrBs
Radha chatrath
a year ago
What's de investment
God !!! its good. I was the one who usually went into deep slumber even on listening the word "Economics" you made me to fall in love with the subject. Thanks a lot Ms Jha for your efforts. Please keep up the good works. Cheers!!! Ateeq
Apurva Jha
3 years ago
Thanks Ateeq. Will try my best to make economics easier for you guys :)
  1. ABOUT ME NAME-APURVA JHA GRADUATEDIN ECONOMICS, MATHS AND STATISTICS MASTERS IN APPLIED ECONOMICS FROM CHRIST UNIVERSITY, BANGALORE HOBBIES-WATCHING MOVIES. READING BOOKS, COOKING RATE, REVIEW AND RECOMMEND


  2. CHAPTER 3 LIBERALISA TION, PRIVATISATION AND GLOBALISA TION: AN APPRAISAL


  3. OBJECTIVES 3 4 Background of reform policies introduced in India Mechanism through which reform policies were introduced. Globalisation and its implication for India. Impact of reform process on various sector


  4. BACKGROUND Late 1980s, Govt expenditure > Govt. revenue borrowing became unsustainable -1 inflation, imports, foreign exchange . India approached World Bank and the IMF--$7 Billion as loan e Conditions- reduce the role of govt. in many areas, removing restriction on private sector, remove trade restriction


  5. NEW ECONOMIC POLICY stabilisation measures structural reform method Short term long term correcting BOP, inflation remove the rigidities in various sectors of economy Sufficient foreign exchange reserves and prices under control


  6. LIBEARLISA TION INDUSTRIAL SECTOR- a) Industrial Licensing-alcohol, cigarettes, hazardous chemicals, pharmaceuticals, explosives) b) Private sector not allowed in many industries (D fense equipments, railways, atomic energy) c) Goods could be produced in small scale- Many goods were de-reserved d) Control in price fixation-Marketto determine the prices dl) Controlin price fixation- Market to determine the prices FINANCIAL SECTOR REFORMS- a) Reduce the role of RBI- Regulator to facilitator of financial sector b) Establishment of private sector banks c) Setting up of new branches without the approval of RBI d) Foreign Institutional Investor (FII)- (Merchant bankers, mutual funds, pensionfunds) allowed to invest in Indian market


  7. LIBEARLISA TION TAX REFORMS FISCAL POLICIES TAXATION GOVERNMENT EXPENDITURE Direct Indirect High rates _ Tax evasion Accept moderate rates of income tax Corporation tax . Reforms in indirect taxes Simplification FOREIGN EXCHANGE REFORMS DEVALUED Inflow of foreign exchange Market determines exchange rate


  8. LIBEARLISA TION TRADE and INVESTMENT POLICY REFORMS . Quantitative restriction on imports + High tariffs Tight control over imports . Policy reforms aimed at i) Dismantling of quantitative restriction i) Reduce tariff rates iii) Removal of licensing policies for imports iv) Removal of export duties


  9. PRIVATISATION GOVT PRIVATE COMPANIES Withdrawal of govt. from management Sale of publicsector companies Disinvestment- Improve financial discipline, modernisation Private capital and managerial capabilities will improve the performance of PSU *Autonomy to PSUs to take decision Special status i) Maharatnas i) Navratnas ii) Mini-Ratnas


  10. GLOBALISATION OUTSOURCING Company hires regular services from external source MNC outsource their services to India . Cheaper cost with reasonable degree of skill WTO1995, Successor of GATT WTO 1995,successor of GATT Nations can't place arbitrary restrictions on trade Enlarge productions and trade of services Optimum utilisation of world resources and protect environment Covers trade in both goods and services