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Indias National Income that was Rs.9140 Crores in 1950-51 raised Rs.16, 80,000 Crores in 1998-99.

The Per Capita Income that was Rs.255 only in 1950-51 increased to about Rs.16,500 in 2000-01.The percentage of the population who lived below the poverty line was 55 in 1974 and it came down to 26 per cent in 2000 (people who earn below Rs.328/= in rural areas and Rs.454/= in urban areas are considered as living below the poverty line). In spite of our planned economic development, we still face poverty, unemployment and economic inequality. Population explosion is one of the main reasons for such a state of condition. Privatisation : The policy of privatizing the state-owned industries emerged in the 1980s. It started in England during the Thatcher Era (1976-89). It spread to both the developed and developing countries.Basic and key industries, which were under the exclusive control of the Government such as Airways, Railways, Shipping, Power Generation,Water Works and Telecommunication etc., have been thrown open for private enterprises. Privatisation gained momentum when liberalization started in India after 1991. Liberalisation : The restrictions imposed upon the private establishments to start industries that were exclusively owned and controlled by the Government were relaxed. This process began in India after 1991. After liberalization the number of industries reserved for the public sector in India has come down from 17 to 3. Now private sector is allowed to start steel, air transport, shipping, heavymachinery and even defence industries. Similarly there has also been the relaxation of all rules and regulations with regard to license, permissions to import and export, price control and marketing. This process is called as liberalization. Disinvestment has become the next step in liberalization. The New Industrial Policy, announced in 1991, has made Strategic and HighTech Industries and Infrastructure as the Government investment areas. The Government began to raise resources by selling its equities in the Public and Public Undertakings to the Private sector. The Private sector is encouraged to become more professional and competitive. The Public sector has to face the challenge and become efficient. Globalisation : Nations are economically interdependent at the global or international level. They have to necessarily integrate themselves with the global trade, business and market. World has become a global village due to communication and information revolution. This has made the member countries of the United Nations Organisation (UNO) to come together to set up the World Trade Organisation (WTO) on 1 January 1995. Its purpose is to promote trade among the world countries. Its headquarters is at Geneva. The member countries of WTO have to enter into liberal bilateral trade agreements. They must allow free flow of goods, capital, technology and labour. They have to relax trade restrictions in their countries. They have to remove the limits on import and export quotas. At the same time they have to accept WTO conditions. The WTO sets the global norms of trade which the member countries have to accept and follow. This is called as the Globalisation process. India is a member of the WTO.