1. Liberalization and Indian Politics
JYOTI
Assistant Professor
Department of Political Science
PGGC-11
Chandigarh

2. Meaning of Liberalization
Main Characteristics of Indian Liberalization:
Privatization
Decline of Public Sector and Expansion of Private Sector
State Regulated Economy
Advent of Multinationals
Special Incentives to Non-Resident Indians
Relaxation in Licensing System
Import Facilities
Export Facilities
Competitive Market
Liberal Financial Loans

3. Privatization
Meaning of Privatization
Characteristics of Privatization
Disinvestment
De-Nationalization
Contracting Out
Extension of Autonomy
De-Bureaucracy
De-Centralization
Promotion of Competition

4. Aligning Conditions
Dismantling State of Monopolies
Adaption of private Enterprises Condition
Reduction in Public Services

5. Merits of liberalization and Privatization
Increase in Production
Qualitative Improvement in Production
Economy is strengthened
Incentive to Work More
Reduction in the Burden of Public Exchequer
Improvement in the Performance of Public Enterprises
Investment of Foreign Capital

6. Demerits of liberalization and Privatization
More Possibilities of Political Corruption
Exploitation of Labour
Establishment of capitalistic Society
Due Attention is not paid to Deprived Sections of Society
Political Power handmaid of Economic Lords
Decline in Moral Values

7. Liberalization and Privatization in India
Industrial Policy of 1991 and Liberalization and Privatization:
Abolition of licencing system
Concessions to monopolies and Restrictive Trade Practice Act-MRTP Companies
Reduction in the role of Public Sector
Loss Incurring Public Enterprises
National Renewable Fund

8. Investment of Foreign Capital
Import of Foreign Technology
Collaboration with Foreign Trading companies
Organization of Special Board
Small Sector Industries

9. God Results:
Increase in Gross Domestic Product
Increase in Foreign Exchange Reserves
Decline of inflation
Increase in Export Growth Rate
Rupee made fully convertible
Bad Results:
Reduction in industrial production
Fall in growth rate of Electricity
Increase in Foreign Debt