Basically, all the economic policies which directly or indirectly seem to promote the expansion of the private sector or the market (economy) have been termed by experts and the governments as the process of privatization globalization the official meaning of globalisation for the wto is movement of the economies of the world towards.
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The economy of india had undergone significant policy shifts in the beginning of the 1990s this new model of economic reforms is commonly known as the lpg or liberalisation, privatisation and globalisation model. Indian economy had experienced major policy changes in early 1990s the new economic reform, popularly known as, liberalization, privatization and globalization (lpg model) aimed at making the indian economy as fastest growing economy and globally competitive.
Advertisements: liberalization, privatisation and globalisation economic environment is also called business environment and are used interchangeably in order to solve the economic problem of our country, the government has taken several steps including control by the state of certain industries, central planning and reduced importance of the private sector. Liberalization, privatisation and globalization for indian economy the buzzwords of today’s economy are liberalisation, privatisation and globalisation liberalisation of the economy refers to the changing nature of policies and procedures to facilitate more growth and ensuring better standards of living. Most important, the eighth five year plan marked the beginning of privatization and liberalization of the economy in the country plan performance the target growth for the eighth five year plan was taken as 56 percent but by the end of the plan, india achieved an actual growth rate of 678 percent, higher than that of the target.
This new model of economic reforms is commonly known as the lpg or liberalisation, privatisation and globalisation model the primary objective of this model was to make the economy of india the fastest developing economy in the globe with capabilities that help it match up with the biggest economies of the world.
Radical liberalization or globalization measures have been brought in since july 1991 to make the indian economy progressively market oriented and integrate it with the emerging global economy structure. “liberalization, privatization and globalization” (lpg model & lpg policy) approach followed by government of india for an understanding of liberalization, privatization and globalization or lpg model in the indian context, it is essential to detail out the eighth five-year plan, since it was the inception of a host of lpg policy that was instrumental in allowing india to unshackled its economy and engage in global trade and commerce. In pre colonization era, india’s textiles and handicraft was renowned worldwide and was backbone of indian economy with coming of industrial revolution along with foreign rule in india, indian economy suffered a major setback and much of its indigenous small scale cottage industry was destroyed.