Question

Objectives of liberalisation privatisation globalisation

Answer 1

so that the boundaries of all nations may be open for all... it may be a global market.. justice all over.. private owning things passion

Answer 2

Explanation:

• Indian economy during the 1990_1991 period were struggling.

• Political disturbances over in the Gulf region resulted in an immense rise in price for petroleum.

• Acts like M R T P(Monopoly restrictive trade practices act) prevented large companies from making huge investments.
• Acts like F E R A(Foreign exchange regulation act) restricted foreign investment.
• Reservation of certain areas like steel for the public sector prevented large private companies from making large investment.
• Reservation of many goods for small scale and cottage sector led to poor investment.
• These regulations and policies led to economic distress and reduction of further development.
• The indian government in order to tackle these situations consulted the world bank,IMF and financial institutions world over for financial help.

Foreign banks agreed to lend 7 Billion dollars if the following conditions are met:

• The government should make changes in acts like FERA and MRTP in order for foreign institutions to make investments.
• The Governments monopoly on some sectors should be reduced.
• Areas reserved for small and public sectors should be made available for private sector companies.

• Foreign investments must be legalised.

The indian government agreed to the demands and made changes and reforms in their economic policy in order to meet these demands.The changes made by the government were popularly known as LPG(Liberalisation Privatisation Globalisation)