LIBERALISATION GLOBALIZATION PRIVATIZATION Liberalization refers to a relaxation of previous government restrictions, usually in such areas of social and economic

policy. Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Privatization is the process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector (a government) to the private sector, either to a business that operate for a profit or to a nonprofit organization.

Algeria Argentina

Bangladesh Egypt

Import licensing abolished in 1991 Tariffs reduced in 1988; import licensing relaxed in 1988 and 1990 Import Prohibition and tariffs reduced since 1985 Tariffs reduced in 1986 and 1989; import prohibition eased in 1990

Pakistan

Reforms Since 1988. Nontariff barriers replaced by tariffs and tariffs reduced; import licensing eased in 1991. Reforms since July, 1991. Tariffs reduced in 1988 and 1991. Tariffs reduced in 1989 and 1990. Tariffs reduced in 1988 and 1991.

India
Sri Lanka

Venezuela

Thailand

The major changes initiated in the Economy since July, 1991 includes: 1. Removal of entry barriers. 2. Reduction of areas reserved for public sector. 3. Rationalization of the approach towards monopolistic and restrictive practices. 4. Liberalization of foreign investment policy. 5. Liberalization of Import Policy in respect of intermediate & Capital goods.

6. Indian Industry freed itself from regulatory environment. 7. Initiatives were made to invite participation in all areas except six, reserved for the Public Sector. 8. Industrial Licensing was abolished for all industries except nine sensitive industries. 9. MRTP Act was amended to facilitate expansion, alliances, mergers, amalgamations and takeovers.

10. Import Licensing has been dispensed with for all, except consumer goods. 11. Customs Duties were reduced from a pick rate of 200% to boost the exports. 12. The FERA has been amended: a. Allowing resident Indians to acquire immovable property outside India. b. To set up joint ventures abroad, and c. To become Directors of overseas concerns.

13. Foreign investment was encouraged in various sectors. 14. Equity share was increased even up to 100% in several sectors. 15. Granting automatic approval by RBI. 16. Introduction of single, market determined exchange rate for Rupee. 17. FREA is now amended as FEMA (Foreign Exchange Management Act). 18. Reduction in Statutory Liquidity Ratio (SLR) from 38.5% to 25% in 1991-92 and further rationalization by introducing a single uniform SLR of 25%. Now it is 23% since 9.2.2013.

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1. Industrial Regulation: Abolition of Industrial Licensing for all industries, except nine. Dereservation of all industries, except six, reserved for PSUs. No clearance of industrial location, except in 23 cities.

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2. Foreign Investment: Automatic approval of foreign investment up to 51% in 35 high priority areas and Hotels. Entry of FII in Indian capital market. No restriction on usages of foreign brand names, and trade marks for sale of goods in India. Foreign Companies permitted to open branches in India.

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Automatic permission for foreign technology agreements in high priority areas up to a limit. Automatic clearance for 100% EOUs (Export Oriented Units), and units in EPZs (Export Processing Zones) & FTZs(Free Trade Zones), on satisfying certain norms.

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Reduction in customs duties from 200% in 1991 to 65% in 1994 for several items. Advanced licensing system for exports simplified, increasing access to imported inputs. Devaluation of Rupee by 20% in 1991.

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Reduction in SRL from 38.55 to 25%, and introduction of single uniform SLR.

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Removal of the reserve requirements on inter-bank liabilities.

Access to private capital, new norms for Bank. Private investment allowed in Banking sector, mutual funds sector. Abolition of the office of Controller of Capital issues, and setting up of SEBI, an independent regulatory body. Foreign institutional investment allowed in domestic capital market. Financial sound Indian companies allowed to issue convertible debentures or equity to investors abroad.

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Disinvestment of Rs.10,500 crore in 33 PSEs (Public Sector enterprise) in 10 rounds.

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Withdrawal of 696 guidelines by DPE (Department of public enterprise), to grant more autonomy to PSUs.
Implementation of MoU between PSE and Government. Grant Navratan status to IOC, IPCL, ONGC, BPCL, HPCL, NTPC, SAIL, VSNL, BHEL, GAIL and MTNL, granting freedom to incur capital expenditure, decide on joint ventures, set up offices abroad, alliances and to raise funds.

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Miniratna Status to 97 profit making PSEs.

Introduction of non-official, part-time professional Directors in PSE boards.

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Policy for Drug and Pharmaceutical industry and reduction in the span of Drug Price Control Order. Revision of National Mineral Policy. Revision in National Telecom Policy, Private investment in basic telecom services. Maximum foreign equity of 51% for value added services and 49% for basic, cellular, mobile, and radio paging services in Telecom sector. Air Corporation Act-1994- Private investment allowed in domestic sector.

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Private participation allowed in leasing of port equipment, operation and maintenance of container terminals, cargo landing terminals, creation of warehouse and storage facilities.

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National Renewal Fund set up with Rs.2 billion to provide for VRS of surplus staff and training, and Redeployment of surplus workers.

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MRTP amended to remove threshold limits of assets, paving the way for expansions, mergers, amalgamations and takeovers.

10. FERA Act amended in 1993. Now its termed as FEMA. a. It allowed resident Indians to acquire immovable property outside India. b. Any one can set up joint ventures abroad, and c. Any one can become Directors of overseas concerns.

Setting up Raja Chellaiah Committee on Tax Reform. 12. Sick Industrial Companies (Special Provisions) Act amended: - enabling sick PSEs to be referred to BIFR (Board for Industrial and Financial Reconstruction).

Thank You