During 1990 , a policy named LPG was introduced in India. This was done to improve the economic growth. Here’s what LPG means:
💥Liberalisation : ▶️Removal of unwanted controls and restrictions on business.
For example: ▪️Abolishing licensing requirements for business.
▪️Simplifying procedures for exports and imports.
▪️Reduction in tax rate.
▪️Making it easier to attract foreign capital
▪️Freedom in fixing prices of goods and services
💥Privatisation- ▶️Giving greater role to the private sectors in the economy.
The two main reforms include:
▪️Sick or loss making companies were either closed or transferred to BIFR (Board for industrial and financial reconstitution)
▪️Disinvestment of public sector.
💥Globalisation- ▶️integrating the economy with the other countries of the world.
Objectives of globalisation- ▪️Liberalisation in imports.
▪️Promote exports.
▪️Increasing the interdependence among various countries.
▪️Removak of quantitative as well as tariff restrictions.