Liberalisation Privatisation and Globalisation are the three constituents of economic reforms. Let us discuss them one by one.
Liberalisation refers to shifting of license dominated regime to de-licensing, deregulation and de-bureaucratisation. A liberal policy adopted on both domestic and external fronts which included the following measures:
Privatisation refers to any process that reduces the involvement of the state/public sector in economic activities of a nation. Policies were framed to increase the role of private sector in the process of development.
The four forms of Privatisation are:
Globalisation is the process of integrating the various economies of the world without creating any barriers in the flow of goods and services, technology, capital and labour/human capital. Thus it is the process of economic integration of the country with the rest of the world. Globalisation has four components:
To achieve the objectives of globalization, the government undertook following measures:
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