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A brief introduction: Liberalization, Privatization and Globalization. Three words.

Three measures which changed the cvery fabric of the way the world perceived India. The basic essence of the changes was simple to make India globally competitive.

The changes were the need of the hour. Those were the times which were probably the darkest the Indian will ever see. The countrys foreign reserves were close to being depleted. Inflation was rising to never before attained levels. The entire world had lost confidence in the Indian economy. The country was in a crisis both internally and on a global scale. Investment in the country was decreasing by the hour there was a serious lack of capital inflow in the country. There were many factors which werent exactly helping the scenario. The overall rigidity of the country policies had to change or else the consequences would be dire. The need of the hour was a complete overhaul in Indias outlook.

Globalization: The term Globalization as such denotes adjustment of national economy with that of the world economy. It is conversion of a national market into international mobility of factors of production. In others words, it may be described as the integration of national economy with that of global economy. It is a process which draws countries out of their insulation and makes them join the rest of the world in its march towards a new world economic order. The term Globalization as such denotes adjustment of national economy with that of the world economy. It is conversion of a national market into international mobility of factors of production. In others words, it may be described as the integration of national economy with that of global economy. The government of India has taken a number of measures to encourage foreign capital inflow in India. Many facilities and incentives have been offered to the foreign investors and non-resident Indians in the new economy. One of the major forces of globalization in India has been in the growth of outsourced IT and business process outsourcing (BPO) services. The last few years have seen an increase in the number of skilled professionals in India employed by both local and foreign companies to service customers in the US and Europe in particular. Taking advantage of Indias lower cost but educated and English-speaking work force, and utilizing global communications technologies such as voice-over IP (VOIP), email and the internet, international enterprises have been able to lower their cost base by establishing outsourced knowledge-worker operations in India. As a new Indian middle class has developed around the wealth that the IT and BPO industries have brought to the country, a new consumer base has developed. International companies are also expanding their operations in India to service this massive growth opportunity.

The Process:
Some of the important measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included getting rid of the industrial licensing regime, reduction in the number of areas reserved for the public sector, amendment of the monopolies and the restrictive trade practices act, reduction in tariff rates and changing over to exchange rates which were determined by the market. Over the years there has been a steady liberalisation of the current account transactions, more and more sectors are being open to foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors. Globalisation in the form of increased integration though trade and investment is an important reason why much progress has been made in reducing poverty and global inequality over recent decades. But it is not the only reason for this often unrecognised progress - good national polices, sound institutions and domestic political stability also matter. Its important to understand that globalization is more of a change in outlook than a quantifiable reform. India had to globalize to meet the growing demands for development of its export spheres. We needed to globalize to keep up the pace with the world.

Take the example of this very project. The letters which give meaning to this topic are formed through the medium of technology. In this present age a country cannot survive by shutting its doors to the outside world. It has to be open to changes around the world and keep pace with them to make the standard of living within its own borders better. Globalization helped restructure and reform production and trade pattern in a labour intensive economy. The influx of foreign capital also bought with itself the influx of ideas throughout the country. With the entry of foreign competitors and removal of import tariff barriers the domestic industry also began to perform better.