1.

State the reasons for implementing LPG?

Answer»

Liberalization:

  • Liberalization refers to removal of relaxation of governmental restrictions in all stages of industry.
  • De-licensing, decontrol, deregulation, subsidies (incentives) and greater role for financial institutions are the various facets of liberalization.

Privatization:

  • Privatization means transfer of ownership and management of enterprises from public sector to private sector.
  • Denationalization, disinvestment and opening exclusive public sector enterprises to private sector are the gateways to privatization.

Globalization:

  • Globalization refers to the integration of the domestic (Indian) economy with the rest of the world. Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.


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