LPG

Liberalisation
◦ The objective of liberalisation was to put an end to those rigidities and restrictions that were acting as a
hindrance to the growth of the country. Further, in this approach, the Government was expected to be
flexible with its regulation in the nation. The objectives of this policy were to enhance the competition
among the domestic industries and encourage international trade with planned imports and exports.
Moreover, it aimed at increasing international technology and capital. Also, this policy was expected to
expand the international market frontier of the nation and reduce the burden of debt in the country.
Privatisation
Privatisation is the reduction in the domination of the public sectors. These economic reform policies make it easier
for the private sector companies to increase their control.

The government-owned companies are transformed into private sector companies through this reform. This is done
by disinvesting or by withdrawing government ownership. There are three forms of privatisation discussed as
follows –

Strategic sale or Denationalisation – In this form of privatisation, the government hands over 100% of the
productive assets to the private sector.
The partial sale or Partial privatisation – This form of privatisation helps the private sector companies partially take
ownership of the government sector company. The percentage of ownership can go above 50% but never 100%.
◦ Token or Deficit privatisation –
Globalisation
Globalisation is the economic reform that ties the country’s economy with that of the world. The main
focus of this reform is on foreign trade. Various strategic policies are set up that aim to integrate the world
as a whole. This reform increases the cross-border exchange of social, cultural, and technological
knowledge. There are several measures to pursue globalisation.

◦ In Information Technology, much contractual work is being outsourced, leading to its development. This
has given many opportunities to the private sector. Moreover, in the global market, Indian skills are
considered skilled and effective. This is one of the best outcomes of globalisation.