LIBERALISATION IN INDIA: A REVIEW.

Running head: LIBERALISATION IN INDIA: A REVIEW
Liberalisation in India: a review
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2LIBERALISATION IN INDIA: A REVIEW
Table of Contents
Introduction..........................................................................................................................................3
Discussion..............................................................................................................................................3
Conclusion.............................................................................................................................................3

3LIBERALISATION IN INDIA: A REVIEW
Introduction
In global political arena, the four drivers of change namely, political liberalisation,
privatisation, environment and technology are considered that affects significantly on the growth and
development of a country. The country I belong to is India and she, subsequently, has faced issues
related to the political liberalisation that are summarised in the respective abstract.
Discussion
Political liberalisation: the aim of liberalisation of politics is loosening government control
over matters such as laws, rules and regulations, enabling free trade and capital formation. “Less
government, more governance” has been the customary theme of the present government of India
which has accelerated entrepreneurship skills and growth in the youth and aspiring business leaders.
Since 1991, liberalisation of economy in India has resulted in transforming industries and potential
industries skilled and service-oriented by privatising them.
Due to the issues related to fixed exchange rate system, troubles related to balance of
payment occurred, resulting in acute economic crisis throughout the country. Such situation paved
way for liberalisation of economy in 1991, which reduced tariffs and duties, emancipated public
monopoly, allowing foreign direct investment in primary, secondary and tertiary sectors of economy.
(Arnold, 2015) The Bharatiya Janata Party initiated National Democratic Alliance which started
privatising the malfunctioning government-owned enterprises such as VSNL and Maruti Suzuki. The
Bharatiya Janata Party government led by Narendra Modi opened the insurance sector by granting
49% FDI, leading to increase in foreign investments and multinational companies (Siddiqui, 2015).
Conclusion
The discussion intends to deduce that privatisation has helped India by increasing her GDP
by almost 7.3% from 1991 to 2019. Information technology has been implemented in agriculture due

4LIBERALISATION IN INDIA: A REVIEW
to liberalisation which has helped in agricultural growth. Industrial growth can be noticed with
improvement in infrastructure with youth possessing refined skills and training. India is performing
fairly with the wave of liberalisation speculating to meet the growing demands of the neo-
liberalisation era.

5LIBERALISATION IN INDIA: A REVIEW
Reference
Arnold, J. M., Javorcik, B., Lipscomb, M., & Mattoo, A. (2015). Services reform and manufacturing
performance: Evidence from India. The Economic Journal, 126(590), 1-39.
Siddiqui, K. (2015). Agrarian crisis and transformation in India. Journal of Economics and Political
Economy, 2(1), 3-22.