Eco Project Lpg Ppt
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Transcript of Eco Project Lpg Ppt
Liberalization, Privatization and Globalization (LPG)
PROJECT ON
Indian economy in deep crisis (July 1991).
Inflation roared to an annual rate of 17 percent.
Unforeseeable changes in the economies of other nations.
INTRODUCTION
Relaxation of rules and regulations
P. V. Narasimha Rao and his finance minister Manmohan Singh started breakthrough reforms.
As of 2009, about 300 million people have escaped extreme poverty.
LIBERALIZATION
High tariffs on foreign trade.
High restrictions on licensing.
Inconvertible currency(rupee)
Encouraging the domestic industries.
PRE-LIBERALIZATION POLICIES
The low annual growth rate
Only four or five licences would be given for steel, power and communications.
State-owned enterprises made large losses.
Corruption flourished under this system
IMPACT
Industrial licensing
Abolishing the Controller of Capital Issues
Introducing the SEBI Act
Reduction of Tariffs
Encouraging FDI
NARASIMHA RAO GOVERNMENT (1991-1996)
in FDI, FII and Portfolio investment
In GDP per capita (1.5 to 7.5)
IMPACT OF REFORMS
Promotion of free trade
Elimination of tariffs
Globalizing the economy
GLOBALIZATION
Devaluation
Disinvestment
Allowing FDI
NRI Scheme
STEPS TAKEN TO GLOBALIZE INDIAN ECONOMY
International market for companies,
Wide range of products for consumers.
Increase in flow of investments
Faster flow of information between countries
Technological development
MERITS OF GLOBALIZATION
Outsourcing of jobs
Adverse effects of MNC’s ruling the globe
Colonization
DEMERITS OF GLOBALIZATION
GDP increased to 9.7%
No improvement in agriculture.
Improvement in service sector
(employment generation)
SUMMARY
Transferring ownership of the
business, enterprise, agency or public service
Privatizing a publicly traded stock.
PRIVATIZATION
Competitive environment
Indian economy is booming
Better growth of GDP
WHY WE NEED PRIVATIZATION
Efficiency and growth
Utilization of Labour and Capital
Market discipline
GOVERNMENT HAS FAILED IN..
Thank you