ECONOMIC LIBERALIZATION in india

this presentation provides with a brief outlook of the economic LIBERALIZATION in india

1. ECONOMIC LIBERALIZATION IN INDIA ABHINAV TYAGI Roll number-001

2. What is liberalization?

3. Liberalization  refers to laws or rules being liberalized, or relaxed, by a government. 

4. Economic liberalization

5. Economic liberalization is generally defined as the loosening of government regulations in a country to allow for private sector companies to operate business transactions with fewer restrictions. In relation to developing countries, this term refers to opening of their economic borders to multinationals and foreign investment.

6. Economic liberalization IN INDIA

7. REASONS FOR LIBRALIZATION

8. A Balance of Payments (BOP) crisis in 1991 which pushed the country to near bankruptcy The Rupee devalued and economic reforms were forced upon India India central bank had refused new credit and foreign exchange reserves had reduced to the point that India could barely finance three weeks’ worth of imports No FDI & FII Investments

9. Liberalization : A beginning

10. Financial Sector Reform Financial Sector Reforms refers to the deregulation of domestic financial markets and the liberalization of the capital account Financial Sector Reforms are:- Reform in Banking Sector Reform in Stock Market Reform in Insurance

11. Industrial Sector Reform Industrial Sector was among the first sectors to be liberalized in India in a series of measures Industrial licensing has been abolished except in a small number of sectors where it has been retained on strategic considerations Industrial Sector Reforms are:- Abolition of industrial licensing Restriction were removed on expansion Reduction in the reservation of public sector

12. Annual growth in number of companies

13. Trade Sector Reform Trade policy allowing domestic providers (of goods and/or services) to compete more freely in world markets and foreign providers to compete more freely in domestic markets Trade Sector Reform :- Elimination of Import Licensing Rationalization of Tariff Structure Adoption of Flexible Exchange rate

14. Effect of trade sector reforms

15. India's fiscal sector reforms help to raise the rate of savings and investment in India. This further helps to enhance the productivity of public expenditures India has established itself as one of the fastest growing economies in the world. India is also advancing towards the economical growth and improvement in literacy. Fiscal Sector Reform

16. SENSEX DURING LIBRALZIATION

17. Annual growth in GDP A rate of growth that will double average income in a decade Rapid Growth in all sectors Exports of information technology enabled services particularly strong Impact of these Reforms

18. GDP GROWTH

19. Per capita income

20. Political Reforms for Good Governance Re-engineering the Role of the government Administrative and Legal Reforms Strategic Management of the Economy with a focus on knowledge based HRD Activities Fiscal Prudence Challenges Ahead

21. Agricultural Sector Reforms Industrial Restructuring Labour Sector Reforms Foreign Trade and Outward Investment Policies Financial Sector Reforms

22. And now…..

23. Among the Top-15 Countries in terms of GDP at constant prices

24. Robust Economic Platform

25. Surging Exports

26. Attractive Investment Destination Vibrant Capital Market AND…… Pacing Ahead to Emerge as a Major Economy in the World

27. Major M&A Deals Undertaken Abroad by India Inc. USD 12.1 billion Tata Steel buys Corus Plc USD 6 billion Hindalco acquired Novelis Inc .

28. USD 11 billion Vodafone buys Hutch USD 0.905 billion Renault, Nissan and Mahindra & Mahindra has initiated a Greenfield automobile plant project in Chennai.

29. Arguments in the favor of Liberalization Increase in rate of economic growth Increase in competitiveness of industrial sector Reduction in poverty and inequality Fall in fiscal deficit Control on prices Decline in deficit of BOP Increase in Efficiency

30. Arguments in the Against of Liberalization Pressure by IMF and World Bank More depending on Foreign Debt Dependence on Foreign technology Undue importance to Privatization Problem of Unemployment