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Assignment
OF
PUBLIC PoLICY
IN INDIA
S0BMITTEDFRDm SUeMITTED TO
NamAMANNA GPR SHoMAILA_wARSi
MA'AM
Roll ho-19|4
Counse B-A- PoL Sci(h)
Sem-_

Yea 3

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CRITICALLY XAmINE HE
HE
LIBERALISATION POLTCY
AETER99
"LIBERALISATION IS wHAT_NURTUR£S

SPECIALITIES OR TALENTS w THIN A SIAT2

&IN TVRN AEES THE NATION A_

PROSPEROUS ONE"
- SOumYA SHOURYA

wHAT TS LIBERALISATON
LbeaalisaHEn 9ulms fo_a laxahe oaurn
ment Lstucn Png_um aha AMas AOua!
hinca! &econmipelies

Tntnu conPd oeonom peliuy, ibualizatin K

alpns D essehjing gouwmmnt egudahons
HLstuHeNE Hateiu JpaunichaNON by pLOHL
mthhs

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ate......

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Somtums benalgahom asou0k im tmL swlo Oti-

on 1dues ulahing soual mauersuhas
abgutionml_dueue

Libexalzanin is n tuoed as SqnDnymeus

wim dleugulaterl mot is gemoua
State utwnons0n_bus ho. n quinapl
hi huo Qu USHn budm OUN C both
ms U Qenun-ally Used to Nalen to n i auing
Omluss ram Stae _N1vemhen.

Libealigahem me loosing eummunt

COnteols.
Libenalisahien was _begamm t but On end to_
these oiminn ons, epem mulhple_Qias
me eonwm ThoughSOm ibnalisan 9n Aefo
Sols wend plouun thu 1980s ih_awas G
obuttJmpartbiykhnalogu upgtodaren
Pisca! pslis pnuin unuustminti un~sixi al_
wnsing 2econbmic aletnm pdiues Woinisd
n 1991 uns mOI n n a l , Thr 0s a Jau
Siomaicomu avuab, namly Mu inanual seur,
jnduua bein Ycuign Oxhange mauluti tme
ulgm, & unuustment &tuactë Seups rat
9oinnd UWcomihon in a0er 199)

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L1BERALISADDN
ibeHalizanom &denegulan em played a enbal
Ll_un Shmulan'ngJh massive uSe In
dntennasNional tuode POI&Lruign nchom
portholio_cobltallibenaigonm. dougutanen
LA fus botn seam tu hausLentuibLIéd D hg
Dohn izngm_ul ho wslo Cmnamy.

Gberalishion Measores
TNOUSTR PL
SECTOR
REFORmS
TRADE FINANCIAL.
PoLICy SECTOR
REPORMs REfoRM s-

TA
fOREIGN REFORMS
EnAN4E
REFORMS

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LTBERALTSATION
IN INDIA
"wITH LIBERALIZATION IND1AN
INDUSTRY GAINFO INTERNATIONAL
CAPOSDREBECAUSE OF wHICH II
BeCAMEImPeRATIVE fOR ComPANTeS

To wORK THEIR_STRATEGIES T 6eloMe

GLOBALLY ComPETITZVE
-BABA KALYANI
In India etonomeibexnizanen Is JnihaKd_n
1991wim tne onl maluing M econom
mO Ouonueg etpomding Ah 9ele -Asuiuase
2orugn uust mamt

These in clude houhial somarimos ul ouvahsa

Hiem c/ gauwmment JhsnihutiMA AMek, wa
Jobouw maulu 0x 9ubales on blwi hesaes,
testrichions n botm domuthic&shere
Cabitnl, Opening (maulurs Hon J u tnde

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 Dota

New Economic Policy of India

hene_hay_beon a uolutonory_Chongi m
Jndiom Economy Sihu he eShöusal o M
Nous Eonomuic Sotegu in 1991 7hss hod rsat
MOtiem become% \benolsedL mR econo c
Gumtuy asa0Las
lees Com beu n e n Won ho

Economlc hualisanien L UODing Hho wmmMI

9OQULÜOHmo_Ama Ceumtu allcus t m g
Aiugte secn Lombom&_do OALnak baihays
THOMSaLchend_uiBn_CombanaHul e u n

The econam ibenalisain InJndia I l n s to

Lonomuc beralizantm_ tane LAmduys onDmw'e
Choliuis m ho goal maLing h CDnomy
mo tmogltt 0uendey A0ponokh h ole
duCALL}ouim dnustmuns.

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08JECTIVES
Jo boost Ombenien betuin domeshc buinaues
To oLooie origm tuo4i_& eKulnk inpo kepai.
Toinpoue th echnology& Joraiyn_Copiini
To dauleh 0Alokal haalet aCemny
To nule Muduht bunben 0 CenN

To umlpu ne ewnomc potemtial e u LAuy

bu_emau10gin0Aha ailau Secten&mininannal
Coupoerahims inus2apond.
To emcouwng L a Sechonho tolu om
Ochiw ubsut in tho dauLebmaMt unce.
To uduu the ole_y ho ublc Seetron ih
Puou uhnusiua Aulepmumt

To iUOAu_UMON_LOheNNDn umDM eLonmy

wim he 0m ca_Unwasina pueMY.

RE FORMS UNDER LIBERALISATION

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INDUSTRIAL SECORS
EORMS T

foREIGN REFORMs fINANCLALS

EXCHADE UNDER SECIOR
RePORMS LIBERALISATION RECORMs
EXTERN D
SECTOR
REfORMs TAx REFORms
fISCAL REEORMSS

INDUSTRIAL SECTOR REFORms

.ABOLITLON OF INDUSTRIAL LICENSING

The Qwwnmmoblluishad mo tems ng
LAuhwmmts a all jinduutics enLpi Yo7S
Jnoistue whihoK

Uganbe
Delense e0ipmnt
Industuia Es105/ues
angenes Chemals 2duuga hanmaCun als
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CONTRAC1ION OF PUBLIC SECZOR

A numbe ohubl Secte industbvies whch

Pusenlu theo CØmbomuesOu nly3ih

huimbe Pubhr Seun undantoldng Conhols
beleuo
uln ho Sedhop_memhiond
Roilwoy
Ahormuc Crung
Delena
3 De-JIseNOnion E PRODUC TION EAREAS

Ihe kOskLcnimS OnLas who

un ruud
Pon Smoa SCalu undustuey
to al This Urouy hu lnyOPpatnydeuetsped

Lahan 9n
Bwre by num lalen duing tomMs enkwd into
mon uil Seho (0ugomizan
ub mUGANEm
Inh me C h n o Panming. padectaru L
technjcallhuueny hi prahuh m

CAPACITY
4EXPANSION OF PRDPvCTION
to Opamd
Je o0u unS ww uolumbuuly alleuid
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Moin he40tu cheM_ opouity Occopling tni hotusta

Th own_Unep p doduc Sn nustudy of fne

pn0u londihamA ulakd do domondLsuqfl h

lom unden luunuahen a/e7 0ch Cep 2 hada

ubert h plon muin hooducin hulon h
damnemOkluk_(gn uinkenhonigmalmoHles
wwhca hag DrwbHbility m
uNLnnaNOVaL
fobeus
Tmpoh Jals Hohnl09i was enEuapel

5 FREEDOM To ImPoRT CAPIIAL GoDS

ToLhonod 0depi Jechnolo4 uhic is mon
odumiJ empu d Vishn9 Pchnolag
n blsinOyS houe ooduhEN_wmik_
Olleu_hy unped obithl povn duomielP
CEUnOBs Thu hulhay in incweaingu pen Qreaa
Culhuoni&m css Mo CAUmL hoiumeb L Baklce
_Oynen ucts uo00LeLu t_hahonge th
hrooaj_up u0dation

FINANCIAL SECTOR REfORMS

hinonciol Secroin wluas uo sue ingnual
inshhues Wu CommuGial Bamluk, i nuusmmon onus,

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Sto chong hunatonbPanaionehomoedsndon.

dhue munngmedinomcio_Jnchuys
REDUCING VARLOUS RATIOS
StoJutwxu Lauiouhuy Rohid wa uny {m 335%
t 5%
Cosh Ruswuw Roho was toLuwred om I5%to l2

a.ComPE TITJON FRDm New R PRIVATE BANRS

Th bomkin eenw_emunoed wm muuuuad sechur

Cema uuh puhli echan bonlu
This liod ti w Lnhm ositiu emphHin
entponsin hoSuuio_Rt he
uemyimL_

3,CHANUE IN THE RDLE OF RB1

Th Oo
bmu o h COuntuyJLe. The Resouu Bomle
4 Tnaro bezame Oaci0itatp Carlien KRBI
w fho gulo ton S/ honcial ochuties un
YeCeunty

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.De-uOuloniom On IN TCREST RATeS

Lonks uuOne alvuwd o Set hon_wn unlvws

1ONED n Ou bubihes Commouol bagI N
Bu on Saung bonl dupasis no ConJhoy u
Luoim no Contnal_AwINmont

TAX REFORMS/FISCAL REFORms

Fiscal Rognms u h bsliues Se lo no gouwh
manisJaLonen_ &Jublic Aindihua
g0idesdIGnod by nu Conal UMmen Piz
p 0it4 AimUILed h tay btuuhino & toxothm
ONeA cdrotud% LAud an CmuLnenu
h FahQyons

This unUnwnLd h tox uonu on tn

Q0Lwmmnt X HOdu OL Aor LaiGn_

i p utox w0biliy As ho do uutniuu

CaInIbpmdingks gwm tnuty duiueing

AU Yh HLAN ukih lwe ithen wnderduuulofp
wn AQuleiadL

FOREIGN EXCHANGE REFORmS/EXTERNA

SECTOR REFORMs

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A OHign eAChomge boliies enuin UnaA

LDonm ThewW0 00ulofad JntLDN
unlennanional Uod Demono Lewnuies. Uowiou
Iuensue nihad_wn hu Socton ho
duulsp_he powin achomap eues.Som

Deuoluanen Kupee
mUHAOQLpoHR &ousCOWDOI Umpous
Tn1901 hY n wa onuign NChong uso
benik e r KOwde w Oxhats.
Ohn MLasuUA
Th 9uDta S43em_ua LOb aOsd Espeual_en
imb08

AR UmpT IaA POliues uw tuAsOA

Auies On vosuous mpa oods luune

A Obe dune no ihdnoLen-

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TMPACT OF LIBERALISATION
POSITIVE TMPACT
Exee ylw of Capital- Libenalisanen has enhamud
leuwleus 0capinl by maluing oPNdDble pon
the busintya hHLDA tL opind IDm Jisnot
aluo ioble netec
Diusihy ppninuAsDAS- T inuatona us b
Omapi Hd by Jnuing ohonen_ MOr bwios

3Imack o0uiuwu Jn nis ato no Croppin

oigna houu Ortouenud 0 ugA chomo bu hs
impact benaliconen connoi be oluakl
mORbyouwmminlls w i unesmtim
COn b en laemn n Auuchen o ho
dstubunbn no nets
NEGATTVE Im PACT OF LBe RALsPTION IN
INDIA

The wealoning m_economy-hm emmmous

SustDOnitn th pLinalpuun eoronu
p suun LwU lead do uualuniMg hntiu.
In donnlLonomy

a)Techno lopital inpouk abM dulop munu wn khnolsx

ODAmony Smoil SCala__unduwAsus afhn
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businus wn Indo w 0hon Odju w homges 0N

Shuut hain buNUS0S

3)MngAA X OcOLuisiHionB-LeIU ho Smal bui'nDrs

mangauai ha th bi9 Comp onies houporu, the
empeyu a / ho Sma Compmes mmolhud to
Onhom hein blils_ beomu t thnlogical
Ocuomwd

ATER KErORMS
T laied uon Qunmmink_OHUmALA4 _a
oo0eoySiiw budg24 ha nCgwnagod ULImA,
bu na 1997 Asim linomCal uiisLpoihial
uhStobilihuy_ aak ewomic bynariOn.
Th NA GOnmomt alan opLna h hni
CDa undustuy yhMsuDh Uainghi Coal mih
Tt Oplechy Moled ho Snne
honeplu uen nu_miniug 0 Loa SeLh e

ming

19m Juy v017 NDA UOummU_maLn

Mod OHDuLcd
en I Juy 2011mo NDA Owmment m den lod
OMoeS Gooas SeuCeT Hat on hi
legslon8m wa inS Dposedlgeas dadier
UmdnYN NDA 4OUwmmimt in ovv totehlac
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multhlo jdiut BouA bim_0 milied 401 Sy tuu

On D Seplem ben o19 Lnomte Munis se Numola

Sithanammon annDunU Uuduthen no_bose
LOtp@0ak tone emm80%, to 22 or
empa nies LPuwn 5 o to IS J%.

LONCLUSION
TN hme whom h0 w0ld economu SMukd
04Lin0duod0mano UALuGus n0nms
bumg Stuon24 oCin
w lan talent Lhoknna Uhy mon

Qund ho ih AOiuAuuh 00iuea O ben

ubid by L0po1otos PGm_Uuealrhian LUmbues
guab Uhe Us eplgit wonlns Am h
hDgnon Leumiuies Ths K not_ least becaus0 as
a'ciu'sis_SAolous 0L ow nok
mo7thors o0 n 0alily aoiIhan w hgn
oin
fioa morou Cuns h cpA) Om is fhuuew_ no
So u l Yho uoin o malhers sS bu
DHhn,

wd
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