After 1991, a new chapter dawned on India with the liberalisation of the Indian economy. The new economic reform also known as Liberalisation, Privatisation and Globalisation (LPG model) was introduced with the aim of accelerating the growth of the Indian economy and making it globally competitive. Liberalisation aimed at giving freedom to the Indian business and industries from unnecessary controls and restrictions. It involved the end of the license-permit-quota raj. Privatization involved giving greater role to the private sector and reducing the share of government in public sector companies. Globalization involved integrating the Indian economy with the world economy, with the help of the liberalisation and privatisation policy. These were the salient aspects of the New Economic Policy of 1991, which was adopted to usher in the era of globalisation. India gave importance to traditional values since its independence in 1947. It gave importance to self-reliance and followed socialistic policies of economic development. The government put various barriers on foreign trade and investment in order to protect its domestic industries from foreign competition. During the 1960’s and 1970’s, the Indian industries were just coming up and any exposure to foreign competition would be a blow of death to those industries. After 1991, with the support of international trade organisations, India removed these barriers and opened up its economy. After the New Economic Policy 1991 was adopted, Foreign Direct Investment (FDI) has steadily increased in India. FDI is an investment made by a company in one country, into a company in another country. It refers to capital inflow into the country. Post globalisation, many multinational companies (MNCs) entered the Indian market. It bought about a dramatic increase in the investment activity. According to The Financial Times, the FDI in India, in 2015, overtook China and the US. In the first half of 2015, India attracted FDI of about $31billion. Globalisation tremendously affected the Indian economy. The consumers of India were the most benefited. The Indian market was flooded with quality foreign products post globalisation. Increased investments by the MNCs increased job opportunities. Increased competitions forced the domestic companies to improve the quality of their products and to adopt new technology. Foreign collaboration with Indian companies resulted in inflow of capital, technical knowhow and better production methods. Globalisation leads to integration of markets globally. It gave an opportunity for producers to reach a wide global market crossing the international boundaries.Consumers in the country got to choose from a wide variety of products produced in different countries. For example, Volkswagenthe biggest German automobile company entered Indian market in 2007. Hence, it helped to merge the emerging and developing economies with the world economy. However, globalisation has had an adverse effect on various sectors in India. Foremost among them is agriculture. Agriculture is the backbone of the Indian economy. The growth rate in agriculture declined post globalisation. The support of the government to the agricultural sector has declined gradually since the reform period. In 1951, agriculture contributed 59% of the GDP which went down drastically to 22% in 200607. It has also resulted in rising competition, which has threatened the existence of many small scale industries. They lack the capital to meet the international giants and many of them had to shut down their business because of the market competition. Globalisation has created a huge disparity between the urban and the rural areas of India. Government should take immediate steps to ensure more employment opportunities in rural areas. Without growth of the agricultural sector, India cannot achieve a stable growth of its economy. Globalisation has brought tremendous opportunities for human development. India should ensure that rapid development in education, health, labour and employment should be undertaken. A strong foundation is essential before the country starts enjoying the benefits of globalisation.(i) What is the LPG model?(ii) Why did the Indian government put barriers on foreign trade and foreign investment before 1991? What happened after 1991?(iii) What is FDI? How has the Indian government liberalised the FDI regime?(iv) How has globalisation affected the Indian economy?(v) What is the impact of globalisation on agriculture?(vi) What are the negative effects of globalisation on the Indian economy?(vii) How does globalisation lead to integration of markets across countries?(viii) What measures should be taken by India to maximise the benefit of globalisation?