MCom I Semester Environment Concept Globalization Liberalisation Privatisation Study Material Notes

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MCom I Semester Environment Concept Globalization Liberalisation Privatisation Study Material Notes

Table of Contents

MCom I Semester Environment Concept Globalization Liberalisation Privatisation Study Material Notes:  Meaning and Definition of Globalisations  Advantages of Globalisations Policy Arguments for Globalisaitons  Impact of Globalisation Consequences of Globalisation Indian Economy and Globalisation Liberasations Meaning and Definitions of Liberalisaitons Need or Rational of Liberalisations Trends towards Liberalisations Recent Trends in Liberalisations Advantages of Liberalisationf in India Long Answer Questions Short Answer Questions Objectives Questions :

Concept Globalization Liberalisation Privatisation
Concept Globalization Liberalisation Privatisation

CTET Paper Level 2 Previous Year Science Model paper II in Hindi

Concept of Globalisation, Liberalisation and Privatisation

Globalisation enables a country to enjoy the advantages of international specialisation. A large number of enterprises of all sizes are involved in international business besides their domestic operations. The process of economic reforms and globalistion gained momentum as well as it acquired a certain urgency and irreversibility. In view of presistently growing liberalisation of economic systems across the world and economic interdependencies, globalisation of markets, free flow of capital and knowlege, and rapidly changing customer’s tastes have rendered global business scenario much more volatile and competitive.

Concept Globalization Liberalisation Privatisation

Meaning and Definition of Globalisation

Globalisation means several things for several people. For some it is a new paradigm-a set of fresh belief, working methods and economic, political and social-cultural realitions while the previous assumptions are no longer valid. For developing countries, it means integration with the world economy. In simple economic terms, globalisation refers to the process of integration of the world into one huge market, such unification calls for removal of all trade barriers among countries.

Oscar and Large opined that in modern period the future of economic development of under developed countries depends on international co-operation.

Prof. Deepak Nayyar defined globalisation as the “expansion of economic activities across political boundaries of nation-states.”

The terms ‘globalisation’ has four parameters :

(i) Reduction of trade barriers so as to permit free flow of goods across national frontiers

(ii) Free flow of capital among nation-states

(iii) Free flow of technology

(iv) Free movement of labour in different countries.

Need of Globalisation

There are several reasons why companies go global. These are as follows:

(1) One reason could be rapid shrinking of time and distance across the globe.

(2) Policy of globalisation has been adopted for the rapid economic development.

(3) When a company which has gone global, it commits itself to several manufacturing locations around the world and offers products in several diversified industries.

(4) Global company views the world as one market and minimises the importance of national boundries, sources, raises capital and markets wherever w it can do the job best.

(5) In foreign investment policy of the government, approval has been given 100 for direct foreign investment upto 51 percent foreign equity in high priority industries.

(6) Foreign direct investement has also been allowed in exploration, production and refining of oil and marketing of gas. Captive coal mines can also be owned and run by private investors in powerful positions.

(7) Matters in which foreign capital is available for the installation of machine, they can establish industries by themselves.

(8) Foreign exchange regulation act is also amended.

(9) The industrial policy gives automatic clearance for the imports of capital goods in such cases where foreign exchange availability is ensured through foreign equity

(10) The policy seeks to give automatic clearance for the imports of capital goods if the value of imported capital goods required is less than 25% of total value of plant and equipment, upto a maximum value of 2 crores.

(11) Petroleum and mining companies often go global to secure a reliable or cheaper source of raw materials.

Concept Globalization Liberalisation Privatisation

Characteristics of Globalisation

(1) Globalisation refers to the process of integration of the world into one huge market.

(2) Unification of the world market calls for the removal of all trade barriers among different countries. Even political and geographical barriers become relevant.

(3) Globalisation creates the modified form of industrial organisations.

(4) Developed countries invest their huge capital in developing countries at a higher rate of interest.

(5) Rapidly changing technologies are changing the nature, organisation and location of international production.

(6) Globalisation helps in free flow of capital among various countries under different mutual agreement.

(7) Globalisation exploits intellectual human resources and other resources, i.e., factors of production are transferable from any part of the world to any other part of the globe.

(8) Now human and physical resources are easily available to underdeveloping nations.

Concept Globalization Liberalisation Privatisation

ADVANTAGES OF GLOBALISATION POLICY

OR

POSITIVE IMPLICATIONS OF GLOBALISATION

OR

ARGUMENTS FOR GLOBALISATION

Globalisation is developed as the historical event of twentieth century and main economic event of the twenty-first century. Industrial Policy (1991) accepts the facts that foreign investment is essential for modernisation, technology upgradation and industrial development. The main socio-economic benefits of policy are as follows:

1 Development of infrastructure: Globalisation helps in the improvement and development of the infrastructure. For example, faster communication, speedy transportation, growing financial facilities, rapid technological changes, new source of industrial energy etc.

2. Extension of markets: In globalisation, the size of business institutions becomes very big and their businr ses area is also very large. Now no nation can any longer hope to lead an existence of solitude and isolation in which only domestic industries can function.

3. Consciousness for environment : Globalisation promotes various factors of business environment; for example, balance of army, facility of transfer of resources, trade relations, population of other countries, climatic conditions, diseases, medicines, health and security measures are main issues which are helpful to all nations.

4. Free flow of labour, capital and technology: Globalisation enables free flow of goods, capital and technology and thus globalisation becomes a motivating force for nations to develop themselves at a faster pace that creates more gainful environment in the world scenario for each economy.

5. Development of healthy competition : Integration of global markets reduces costs, improves quality, reduces processing time and business becomes dominant drivers. The exclusive markets which were once enjoyed by firms are no longer available to a firm.

6. Free determination of production capacity : Globalisation automatically determines the production capacity by the market forces of economy.

7. Selection of appropriate production and trading pattern : In globalisation, every nation is free to select adequate production and trading pattern according to its available resources and social-economic needs.

8. Possibility to transfer the business : Due to globalisation, in emergencies, a nation can transfer his trading activities in own country.

9. Multiplicity of manufacturing plants : In globalisation, an M.N.C by operating in more than one country gains research and development, production marketing and gaining financial advantages in its costs and reputation that are not available to purely domestic marketeers.

10. Development of domestic multinationals: Corporations like ICICI, Reliance, HDFC, IDBI, Kotak Mahindra etc. have extended their area in foreign countries also which made our economy strong.

11. Other effects : Some other impacts of globalisation are as follows:

(1) Balance of payment is going to be favourable.

(2) Heavy investment has become possible in social sectors such as medical, education and family planning etc.

(3) Increase in savings and investments and job opportunities.

(4) National living standard improves.

(5) Good mutual relations among government, society, organisations and employees.

Concept Globalization Liberalisation Privatisation

ARGUMENTS AGAINST GLOBALISATION

OR

CONSEQUENCES OF GLOBALISATION

OR

NEGATIVE IMPLICATIONS OF GLOBALISATION POLICY

Bad effects of globalisation can be classified into two groups. They are as follows: 1. Bad effects on business

(1) Globalisation promotes cut-throat competition which adversely affects economy.

(2) Globalisation threatens the existence of cottage and small scale industries. It induces regional imbalance.

(3) Individual interests discourage exports and as a result imports become costly.

(4) Direct foreign investment are dangerous to the domestic businesses and industrial organisations.

(5) Globalisation promotes the tendency of merger and amalgamation. It creates danger to small institutions.

(6) Monopolistic tendency of big and multinational organisations adversely affects the balance of payment.

2. Consequences relating to social and economic effects

Socio-economic bad effects of globalisation are as follows:

(1) Due to the open economy goods of daily use become costly.

(2) Mechanisation of industries increases unemployment.

(3) Increasing importance of MNCs adversely affects the balanced economic growth of developing nations.

(4) MNCs expand their business by adopting wholly-owned subsidiary routed at the cost of their established and listed subsidiaries.

(5) Excessive reliance on foreign technology may have a bad effect on the domestic priorities.

(6) In the name of globalisation the MNCs use in their own dress and food habits which are simply grabbed by the youth of the host countries.

(7) The globalisation may create monopolies in the markets and eliminate local competitors.

Concept Globalization Liberalisation Privatisation

IMPACT OF GLOBALISATION

In the economic welfare, globalisation refers to the unique economically interdependent international environment. Each country’s prosperity is interlinked with the rest of the world. No nation can any longer hope to lead an existence of solitude and isolation in which only domestic companies can function. A further development will be the super-national enterprise. It is a world-wide enterprise chartered by a substantially non-political body such as IMF or World Bank. It operates as a private business without direct obligations. It could serve all nations without being especially attached to any of them. The impacts of globalisation are as follows:

1 Development of social consciousness : Spread of education has influenced the life style of people and standard of living has been improved. By going global, corporations can extend their product lines to other cultures. Education plays a major role in the success of a MNC. A company can both improve product quality and achieve its goals by sharing technology and information. There are so many differences between cultures that it is impossible to cover them all at once. The global company is becoming the most viable force in the world trade and international relations. Since business is a sub-system, its functioning should contribute to the welfare of the society. The purpose of business enterprise is to produce quality goods and distribute them. In the international market, a complete pattern of communication is often created by the combination of diversity of activities, pressures of environment and competition and individual characteristics of the panics involved.

2. Technological changes : Rapidly changing technologies that are transforming the nature, organisation, and location of international production are responsible for transition operation of companies. Companies in electronics and telecommunication spend large sums on research and development of new products and thus may be compelled to seek ways to improve their sales volume to support high overhead expenses.

3. Global form of business : International trade leads to an increase in the world’s prosperity and welfare of each trading nation and living standard of trading nation. Every country specialises and exports those goods which it can produce cheaper in exchangs for what other can provide at a lower cost. The need to think and act from global perspective is universal. The companies are increasingly interested in globalisation. Indian businessmen also are out to see beyond the physical boundaries of the country. The Indian companies are acquiring business in different countries.

Concept Globalization Liberalisation Privatisation

INDIAN ECONOMY AND GLOBALISATION

OR

MEASURES TOWARDS GLOBALISATION OF INDIAN ECONOMY

Industrial Policy, 1991, announced by the Central Government accepts that foreign investment is essential for modernisation, technology upgradation and industrial development of India. Indian government announced modified policy for 2004-09 in which those goods are included in free trade policy which are directly or indirectly related to the global consumers. According to this policy, following measure are adopted :

(1) Except atomic energy and railway, the number of reserved industries are reduced to 2 from 17. It will promote private and multinational corporations.

(2) 97% profit earning public units are now more autonomous.

(3) In order to invite foreign investment:

(i) Provided approval upto 51 percent foreign equity from 49%.

(ii) Import restrictions on 68 items have been removed.

(iii) Approval would be given for direct foreign investment upto 51 percent foreign equity in high priority industries. There shall be no bottlenecks of any kind in thir process.

(iv) India negotiated with large number of countries and agreed to phase out quantitative restrictions. EXIM Policy, 2000 has, therefore, removed quantitative restriction nearly in case of 500 percent items.

(v) The government had clarified that it would permit 100% foreign equity in case the entire output was exported.

(vi) NPIs and overseas corporate bodies are also permitted to invest upto 100 percent in equity in high priority industries.

(vii) On 25th June 2002, the government has given the approval for direct foreign investment (DFI)-26 percent in print media, and 74 percent in technology and medical publications.

(viii) Snce the enforcement of the Indian Patent Act, 1940 Indian pharmaceutical and drug industries progressed rapidly and were able to provide life saving drugs at very cheap rates.

(ix) Rate of excise duties has been reduced.

(x) The government has given the permission to foreign companies to

transact in immovable properties, to invest in Indian capital market and to transfer shares from one NRI to another NRI.

LIBERALISATION

In liberlisation the role of government changes. The government promotes human values and welfare through decentralisation. A number of measures have been taken in recent years towards liberalisation of industrial policy and streamlining of licensing procedures. Industrial policy statement outlined the socio-economic objectives of industrial policy. The changes made in industrial policy and procedures were designed to facilitate expansion and creation of competitive environment. These changes include schemes for re-endorsement of capacity expansion and exemptions from MRTP clearance for investment in high priority areas.

Concept Globalization Liberalisation Privatisation

MEANING AND DEFINITION OF LIBERALISATION

Various economists have defined liberalisation in the following ways:

(1) M. Dhanuja opined that liberalisation is related to that state of economic conditions in which rules, regulations and controls are eliminated to promote competition.

(2) According to Ahaluwalia, “The most important changes have related to reducing the domestic barriers to entry and expansion to inject a measure of competition in industry simplifying the procedures and providing easier access to better technology and intermediate material import as well as more flexibility in the use of installed capacity with a view to enable easier supply responses to changing demand conditions.

It can be concluded from the above definitions that liberalisation is an economic process in which various regulations and controls are liberalised to reform economic conditions of the country.

TARP ASSUMPTION OR CHARACTERISTICS OF LIBERALISATION MAU

Following are the assumptions or characteristics of liberalisation : Rafait

1Ultimate self-reliance aim : Efficient, competitive, and self-reliance economic conditions and prosperous and happy society are the ultimate aims of the liberalisation.

Specification of private sector : According to their assumption, activities of the government should be restricted to limited areas like infrastructure, social welfare and regulatory works.

1 Augmented regulations: The assumption of their ideology is that the public expenditure and regulations should be augmented.

2. Flexibility in rules: The main measures and objectives of liberalisation are globalisation, privatisation and disinvestment.

3. Flexibility of decentralisation : Resrictive and control regulations on economy should be reduced because excessive control promotes corruption.

4. Separation of government from social welfare: This ideology wants to increase the role of government in social welfare and national interest.

5. Liberalisation efforts : Liberalisation is an ideology which promotes liberalised efforts.

6. State and government: This concept redefined the traditional role of the State or the government.

7. Modernisation and efficiency: Modernisation and efficiency are the basis of liberalisation.

Concept Globalization Liberalisation Privatisation

OBJECTIVES OF LIBERALISATION

The process of liberalisation in India means the ‘Infrastructure Adjustment Programme’. The main objectives of liberalisation are :

(1) Development of agricultural sector.

(2) To promote direct foreign investment FDI.

(3) To provide freedom to market forces.

(4) To reduce interference of government in business sector.

(5) To remove obstacles in economic development.

(6) Exchange of information and knowledge.

(7) To improve productivity.

(8) Optimum utilization of resources of the country.

(9) Globalisation of economy.

(10) Development of indigeneous market.

(11) To improve the managerial efficiency and performance.

(12) To maintain the balance of trade of the country.

(13) To induce the economic development.

(14) To induce the free flow of resources at international level.

(15) To increase in economic welfare.

(16) To eliminate undue monopoly in public sector.

(17) To increase mobility and efficiency in sick public units.

(18) To control red-tapism, inefficiency and wastage of resources.

Concept Globalization Liberalisation Privatisation

NEED OR RATIONAL OF LIBERALISATION

India adopted the policy of liberalisation for industrial development due to the following reasons:

1 Improvement in living standard : Globalisation and removal of restrictions help for the providing of good and cheap goods to the people. It increases in some cases opportunities of employment and as a result increases improvement in living standards.

2. Rapid Industrial development : The new industrial policy considerably reduced the interventionist barriers to the entry of domestic and foreign investors, resulting in what has been proclaimed as a much more competitive environment in the industrial sector. It was hoped that this competitive environment would induce higher growth rates in the industrial sector.

3. Economic globalisation : Globalisation is taken to mean integrating the economy of the country with the world economy. Globalisation is liberalisation in trade of goods and services which led to an unprecedented expansion of international trade.

4. Competitive industrial environment: Greater emphasis in controlling and regulating monopolistic, restrictive and unfair trade practices will curb anti-competitive behaviour of firms in the monopolistic and ineffectively competitive markets and thus promote competition and efficiency.

5. Check on wastage of resources: Closure, liquidation or rehabilitation of weak public sector units will put resources for more productive uses.

6. Increase in employment : When a country makes progress and its production expands the employment opportunities grow, liberalisation trends would grow the job opportunities and would reduce increasing unemployment.

7. Check inflation: As a result of liberalisation production of capital and consumer goods would increase. It will check inflation.

8. Remove unnecessary controls: The liberalization policy de-regulates the industrial economy in a substantial manner. The major objectives of the new policy are to build on the gains already made, correct the distortions that might have crept in, maintain a sustained growth in productivity through gainful employment and attain international competitiveness. TRENDS

Concept Globalization Liberalisation Privatisation

TOWARDS LIBERALISATION

OR

LIBERALISATION IN INDIA

The actual operation of the industrial policy has been a subject of criticism, several studies on the implementation of the licensing policies and the functioning of the industrial approval system pointed out a number of flaws and deficiencies. In many cases, the results were just opposite of what the government had planned.

Historically, India’s domestic economic activities have been subject to a wide array of physical controls. In the industrial sector, such controls took various forms, industrial licensing, which regulated entry and expansion, reservation of a large number of industries for the public sector, time consuming procedure required for the existence of industrial units; and price and distribution controls on various industrial products. The industrial licensing machinery over the years had become a major obstacle to industrial development. Policy of price control resulted in misallocation of resources and encouraged complete disregard to costs. The industrial licensing system had ceased to perform effectively most of the functions it was designed for earlier; became a major source of political and bureaucratic corruption and was being used by powerful vested interests, to throttle competition from less influential potential rivals within the country, and increase their monopolistic power.

Industrial development in India has remained concentrated in a few states while other states lag far behind. Since the processes of economic development are closely linked with the processes of industrial development, capital subsidies fiscal incentives and other measures initiated to develop industries in backward areas were directed and the demands of backward states were considered in a meaningful way.

A number of industries are plagued by ‘Sickness’ which in some cases is due to bad and inefficient management.

It may be stated that the new Industrial Policy may be able to attract foreign investment and give a boost to domestic investment, but whether, it will lead to more employment along with higher output growth is doubtful. Besides, excessive freedom to foreign capital may ultimately affect our economic sovereignty and as also push the country into further a debt trap. There are gloomy forebodings, but the recent economic crises as well as the happening in other countries point out to the dangers of too much dependence on market mechanism, uncontrolled liberalisation and globalisation and unfettered freedom of import of foreign capital

Concept Globalization Liberalisation Privatisation

RECENT TRENDS IN LIBERALISATION

In line with the liberalisation measures announced during the 1980s, the government announced a new Industrial Policy in 1991. The new policy de regulates the industrial economy in a substantial manner. The main aim of the new policy was to unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic control, to introduce liberalization with a view to integrate the Indian economy with the world economy, to remove restrictions on direct foreign investment as also to free the domestic entrepreneurs from the restrictions of MRTP Act. All these reforms of industrial policy led the government to take a series of initiatives in respect of policies in the following manner :

1 The 1991 Industrial Policy abolished industrial licensing for all but 18 industries, with the passage of time, most of these industries have also been delicensed. As of now, licensing is compulsory for only 5 industries. The government has also announced its intention to offer a part of government shareholding in the public sector enterprises to mutual funds, financial institutions, the general public and the works. A beginning in this direction was made in 1991-92 itself by divesting part of the equities of selected public sector enterprises. The new industrial policy indicates the government’s intention to invite a greater degree of participation by the private sector in important areas of the economy.

2. Industrial licensing to be abolished for all projects except for a short list of industries related to security and strategic concerns, social reasons, hazardous chemicals and overriding environmental reasons and items of elitist consumption. Industries reserved for small scale sector will continue to be so reserved. The compulsory licensing provisions would not apply in respect of the small scale units taking up the manufacturing of any item reserved for exclusive manufacture by small scale sector.

3. Under the MRTP Act, all firms with assets above a certain size ( 100 crores since 1985) were classified as MRTP firms. Such firms were permitted to enter selected areas in industries only. In addition to control through industrial licensing, separate approvals were required by such large firms for any investment proposals. The new industrial policy, therefore, scrapped the threshold limit of assets in respect of MRTP and dominant undertakings. These firms will now be at par with others and not require prior approval from the government for investment in the delicensed industries. The MRTP Act was accordingly amended.

4. Separate investment limits have been prescribed for manufacturing enterprises. A micro enterprises is the one where the investment in plant and machinery does not exceed 25 lakh. A small enterprise is that where the investment in plant and machinery is more than 25 lakh but does not exceed 5 crore and a medium enterprise is that where the investment in plant and machinery is more than 5 crore but does not exceed 10 crores.

5. The government introduced partial convertibility of rupee in 1992-93 budget known as liberalised exchange rate management system (LERMS). This was followed by market determined exchange rate regime in 1993. The exchange rate is now largely determined by the market, i.e., demand and supply conditions. However, Reserve Bank intervenes to check excessive volatility in the market, such an exchange rate regime is known as the ‘managed float regime.

6. In 1992, SEBI was made a statutory body. It was authorised to regulate all merchant banks on issue activity, lay guidelines and supervise and regulate the working of mutual funds and oversee the working of stock exchanges in India. Since 1992, the government of India allowed Indian companies to access! international capital markets through Euro equity shares.The government of India has also liberalised investment norms for NRIs that NRIs and overseas corporate bodies can buy shares and debentures without prior permission of RBI.

7. The government relaxed its policy concerning majority ownership in several cases and granted tax concessions in personal and corporate tax structure. The government reduced the rates of excise duties, direct and indirect taxes.

8. Now the government is inviting the private sector in public utilities. Private sector is welcomed in public services like supply of water and electricity, construction of roads and bridges, telecommunication, banking services, insurance etc.

9. Since 1991, government strategy attaches high priority to the development of efficient instructure and towards creating enabling environment for private participation in the infrastructure sector.

The government has announced a tax holiday to companies developing, maintaining and operating infrastructure facilities, such as roads, bridges, new airports, ports and railway projects and also those dealing with water supply, sanitation and sewerage projects.

The government of India has allowed automatic approval for foreign equity participation upto 74 percent in key infrastructure industries such as electricity generation and transmission, non-conventional energy generation.

10. The government adoped FEMA in 1999 in place of FERA as according to the government FERA was out of tune with the changing times, FEMA aims “to consolidate and amend the law relating to foreign exchange with the objectives of facilitating external trade and payments and for promoting the orderly development and maintenace of foreign exchange market in India.” FEMA is an important message coming at a time when the international institutions, under the leadership of developed countries, are putting a multilateral investment regime in place that would free foreign investors from any control which host countries might be in the need to impose.

The new Industrial Policy 1991, ushered in a new era of liberalisation as industrial licensing was abolished, role of public sector diluted, doors to foreign investment considerably opened, and incentives and initiatives granted to the private sector to expand its business activities. It welcomed the thought of lower taxes, less red-tape, less paper work, more space to work and less government interference.

Concept Globalization Liberalisation Privatisation

ADVANTAGES OF LIBERALISATION IN INDIA

The theoretical and practical advantages of liberalization in India are as follows:

1 Increase in foreign currency reserves : In recent years, most of the emerging market economies have built up huge stocks of foreign exchange reserves, over the period September 1991 to 2014, India added $313.8 billion to its foreign exchange reserves.

2. Development of money market: Due to reformative measures adopted by the government, India’s money and capital markets have developed considerably.

3. Competition of investment: There has been massive increase in foreign  investment inflows into the country since 1991-92.

4. Reduction in inflation rate : During the post reform period, inflation has had a distinct decelerating trend as liberalisation of both, internal and external trade and continual reduction and rationalisation of taxes has led to greater competition and cost efficiency.

5. Global competition : The real thrust to the globalisation process was provided by the new economic policy introduced by the government of India in 1991 at the behest of the IMF and the World Bank.

6. Reduction in fiscal deficit : As a result of liberalisation, India’s fiscal deficit has been reduced.

7. Increase in exports : As a result of liberalisation India’s exports increased from $ 36,715 million in 1999-2000 to 3,14,405 million in 2013-14.

8. Increase in growth rate : Liberalisation increased the growth rate to 7.4 percent.

9. Concentration on industrial reconstruction : Indian industrial units have been increasing their efficiency by the process of reorganisation, merger, and amalgamation.

10. Automatic licensing : In respect of delicensed industry, no approval is required from the government. Industrial Policy took the bold decision to end the license permit raj and save the entrepreneurs from the harrassment of seeking permission from the bureaucracy of the country to start an undertaking.

11. Availability of best quality goods : Liberalisation helped in providing good and durable goods at lower rates to the consumers.

12. Inspiration to set up industries in backward areas: The industrial policy statement emphasised the need to promote suitable industries in backward areas to generate higher employment. For promoting the development of backward areas, the government extended the scheme of delicensing for location in centrally declared backward areas. It was decided to provide funds to the order of 25 crore to 30 crore to each growth centre for creating infrastructural facilities in backward areas.

Concept Globalization Liberalisation Privatisation

DISADVANTAGES OF LIBERALISATION

The new industrial policy has invited scathing criticism from a number of quarters. The main points of criticism are as follows:

1 Slow pace of growth : It was hoped that this much more competitive environment would, in itself, induce higher growth rates in the industrial sector. However, this has not happened. In fact, the rate of growth in the industrial sector has declined in the post-reform period.

2. Economic inequality: The liberalisation policy chose the more capital intensive path of development and thus, it under played the employment objectives.

3. Increasing impact of MNCs: The idea of free flow of foreign capital is now being sold with the understanding that it would provide the much needed foreign exchange reserves and it would lead to injecting a heavy dose of investment in the high priority industries. The critics assert that, in our enthusiam to welcome foreign capital, we may sell our sovereignty to multinationals.

4. Ignorance of agriculture policy : Agriculture is the pivot point of Indian economy, unfortunately, agriculture is ignored in new economic policy.

5. Unfavourable impact on stability : Liberalisation policy would adversely affect the stability in the Indian economy.

6. Import of luxury goods : As a result of liberalisation, import of luxury items has increased substantially.

7. Lack of profitability : Liberalisation has reduced the profitability of Indian industries.

8. Increasing foreign debts : Some economists argued that the country was rapidly moving towards an external debt.

9. Increasing unemployment: The process of liberalisation has not been me to make a dent on the problem of unemployment.

10. Emphasis on consumer goods production: From the point of view of long-run industrial development, the most important group of industries is the group of capital goods industries. However, the rate of growth of this group of industries fell drastically from 9-4 percent per annum during 1980s to only 5.9 percent per annum in 2014-15.

11. Adverse effect on small scale industries : The process of liberalisation and rapid expansion of large scale industries resulted in comparative neglect of industries in the small and medium sector.

12. Emphasis on non-priority industries : Liberalisation policy has promoted the development of non-priority industries.

The Government of India announced a number of liberalisation measures. Some of these measures are disinvestment, privatisation, exemption from licensing, deregulation etc. These steps were an overall relief in the dismantiling of industrial licensing and regime of control. Major liberalisation measures designed to affect the performance of industrial sector were wide scale reduction in the scope of industrial licensing, simplification of procedural rules and regulations, reductions of areas exclusively reserved for the public sector, disinvestment of equity of selected public sector undertakings, enhancing the limits of foreign equity participation in industrial undertakings, liberalisation of trade and exchange rate policies, rationalisation and reduction of customs and excise duties and personal and corporate income tax etc.

The post reformed period was market by considerable fluctuations and thus showed a total lack of consistency in industrial growth performance. For instance, the rate of growth of industrial production was only 5.9 percent per annum in 2014-15. However, the industrial sector registered strong positive growth of 8-2 percent per annum during the period of Tenth Plan. This suggests that “liberalisation has not been enough to ensure high rates of growth of investment and productive activity and that other strategies may be necessary to encourage that ‘animal spirit’ of entrepreneurs.”

The liberalisation policy seeks to raise efficiency and accelerate industrial production in different ways. Firstly, a number of changes in industrial licensing policy, foreign investment, foreign technology agreements and MRTP Act. are such as to do away with the prior clearance of the government. In such cases, project time and project costs will be reduced. Material and human resources engaged in cultivating contacts and getting things done’ will be released for more productive uses and thus efficiency will improve. Secondly, the changes in respect of foreign investment and foreign technology agreements are also designed to attract capital, technology and managerial expertise from abroad. This will raise the availability of such scarce resources in the country on the one hand, and will improve the level of efficiency of production on the other. Thirdly, greater emphasis in controlling and regulating monopolistic, restrictive and unfair trade practices and the strengthening of the powers of MRTP Commission will curb anti-competitive behaviour of firms in the monopolistic and ineffective competitive markets and thus promote competition and efficiency.

Fourthly, the policy goes all out to woo foreign capital. It has been decided to provide approval for direct foreign investment upto 51% foreign equity in high priority industries. All this was done in the belief that direct foreign investment was crucial to India’s development.

The critics asserted that, in our over-enthusiasm to welcome foreign capital, we may sell our sovereignty to multinationals. The various measures to promote foreign investment and the various concessions to such investment announced in recent years have provided opportunities to MNCs to penetrate Indian economy and gobble up Indian enterprises. The aggression which MNCs have shown to devour domestic enterprises has raised the dangers of business colonisation and many critics wonder whether in 10 years from now there would be any big Indian brands left at all in the Indian market.

Critics base their judgement on past experiment. Once foreign capital is permitted free entry, the distinction between high priority and low priority industries would gradually disappear over time and all lines of production would be opened to facilitate foreign investment. Experience of permitting Pepsi Cola is too recent to show that the government sanctioned it in the least priority area. Neither the project led to export of processed agricultural products nor did it generate employment on a significant scale. Foreign capitalists, after establishing their corporations in the country, might ask for remittance of profits and dividends and royalties. With foreign debt burden already becoming heavy, prudence demands that utmost care be taken to invite foreign capital in high priority areas.

Concept Globalization Liberalisation Privatisation

LIBERALISATION POLICIES ADOPTED IN INDIA TO ATTRACT FDI

Some important measures announced for promoting foreign investment in the post-reform period (i.e., the period since 1991) are as follows:

1 The government announced a specified list of high technology and highinvestment priority industries where in automatic permission was granted for foreign direct investment (FDI) upto 51 percent foreign equity. The limit was raised from 51 percent to 74 percent and subsequently to 100 percent for many of these industries.

2. The government allowed 100 percent foreign equity participation for setting up power plants in the country. Hundred percent foreign equity participation allows free repatriation of profits and other incentives.

3. Foreign companies have been allowed to use their trademarks on domestic sales from May 14, 1992.

4. In the Union-Budget for 2002-03, the Finance Minister announced that FII portfolio investments will not be subject to the sectoral limits for FDI except in specified sectors.

5. In Jan. 2004, the government allowed FDI upto 100 percent in printing of scientific and technical magazines, periodicals and journals.

6. A special empowered board has been constituted to negotiate with a number of large international firms and approve direct foreign investment in selected areas.

7. To provide access to international markets, majority of foreign equity holding upto 51% equity would be allowed for trading companies primarily engaged in export activities.

8. In order to invite foreign investment in high priority industries, requiring! large investment and advanced technology, it has been decided to provide approval for FDI upto 51% foreign equity in such industries.

9. For the promotion of exports of Indian products in world markets, the government would encourage foreign trading companies to assist Indian exporters in export activities.

10. With a view to injecting the desired level of technological dynamism in Indian industry, government would provide automatic approval for technology agreements related to high priority industries within specified parameters.

11. Capital account liberalisation has been viewed by many economists as an important component of the overall opening up of global trade and financial markets.

Concept Globalization Liberalisation Privatisation

PRIVATISATION

At the begining of the last decade of the twentieth century, the tendency of privatisation among world economies has been gaining ground. First of all Margaret Thatcher made it in a central part of her economic policy in Great Britain. Privatisation techniques have already been tried in countries like China, U.S., Brazil, Mexico, Latin America, Africa and Asia.

The collapse of the socialistic economies of the Soviet Bloc and the tacit acceptance by the Chinese of the Taiwanese model with political repression plus state-guided economic liberalisation made the private sector lobbies to move on a step forward-from deregulation to privatisation.

Meaning of Privatisation : Privatisation refers to any process that reduces the involvement of the public sector in economic activities of a nation. The term ‘Privatisation’ connotes a wide range of ideas.

In a narrow sense, privatisation implies the induction of private ownership in public owned enterprises.

In a broader sense, it connotes besides private ownership the induction of private management and control in the public sector enterprises.

Definitions of Privatisation : Some of the definitions of privatisation are as follows:

1 According to Barbare Lee and John Nellis’, “Privatisation is the general process of involving the private sector in the ownership or operation of a State owned enterprise. Thus the term refers to private purchase of all or part of a public sector company. It covers ‘Contracting Out and the privatisation of management through management contracts, leases or franchise arrangements.”

2. According to Prof. D.R. Pendse, “Privatisation is a process that reduces the involvement of the State on the public sector in the national economic activities.”

3. In the words of Dr. A. Peter, “Privatisation is the transfer of function or activity or organisation from public to the private sector.”

4. According to Viren J. Shah, “Privatisation means economic democracy.”

It is clear from above definitions that privatisation is the process of establishing economic democracy which includes passing of ownership right of public sector enterprise to private sector.

Concept Globalization Liberalisation Privatisation

SCOPE OF PRIVATISATION

Following measures are included in the scope of privatisation :

1 Ownership : The sets of measures which transfer ownership of public enterprises, fully or partially, lead to privatisation. This can take following four forms:

(i) Total Denationalisation : It implies a complete transfer of ownerships of a public enterprise to private hands.

(ii) Joint Venture : It implies partial introduction of private ownership, The range of private ownership can vary from 25 to 50 percent or even more.

(iii) Liquidation : It implies a sale of assets to some one who may use them for the same purpose or for some other purpose.

(iv) Management Buy-out: It is a special version of denationalisation. It implies sale of assets to the employees. For this purpose, appropriate provisions of loans from banks are also made to enable employees to take over ownership. In this case, employees become entitled besides wages to ownership dividend,

Organisational : A number of organisational measures are conceived to limit State control. They include:

(i) Holding Company : Government forms a holding company. They are so designed that the government limits its control, interventions only to apex level decisions and leaves the operating companies within the arrangement to a sufficient degree of autonomy in decision-making within the framework of the market forces.

(ii) Restructuring : To bring public sector enterprises under market discipline, it would be desirable to go in for the following two forms of restructuring

(a) Financial restructuring can be effected in the sense that accumulated losses are written off and capital composition is rationalised in respect of debtequity ratio.

(b) Basic restructuring may be effected by redefining the set of commercial activities which the enterprise will undertake henceforth. It may shed off some activities to be taken up by ancillaries or small scale units.

Operational: Operational measures are intended to improve efficiency of the organisation, They, in fact, inject the spirit of commercialisation in public enterprises. The measures include grant of autonomy to PEs in decision-making, Provision of incentives to all employees, freedom to acquire certain inputs from the market, development of proper investment criteria, go to the capital markets to raise funds etc.

CHARACTERISTICS OF PRIVATISATION

The main characteristics of privatisation are as follows:

1 By privatisation, private sector is developed. It reduces government sovereignty in the economic field.

2. It is a measure to establish economic democracy.

3. Privatisation is a wide and universal concept and adopted in economic and non-economic sectors by all nations.

4. It is the main organ of process of change.

5. Privatisation is the main item of the public policy of all the nations.

6. Privatisation promotes economic and technical efficiency.

7. Privatisation reduces government’s interference and increase the freedom and speed of decision making.

8. Privatisation is the process of denationalisation, deregulation and disinvestment. Wolute public A

9. Privatisation is the process of economic liberalisation of economy.

10. Privatisation reduces or minimises the ownership and control of State on the factors of production.

Concept Globalization Liberalisation Privatisation

FACTORS ENCOURAGING PRIVATISATION IN INDIA

Following factors are responsible for promoting privatisation in India :

1 Interest of foreign companies to invest in India : Developed capitalist countries are now struggling with the problem of economic recession. They have found big and wide market in third world countries. India is the right place for investment by the foreign companies. The liberalisation policy of the government also encouraged the privatisation in India.

2. Economic reforms and liberalisation :In Industrial Policy 1991, thegovernment announced a series of economic reforms and liberalisation. The industrial policy also provided increased opportunities for foreign investment with a view to take advantage of technology transfer, marketing expertise. It was also intended to promote a much-needed shift in the composition of external private capital inflows towards equity and away from debt creating flows.

3. Liberalisation of industrial licensing : Industrial licensing was abolished for all projects except for a list of 5 industries related to security, atomic energy, social security. The exemption from licensing also applied to expansion of existing units.

4. To Meet the competition : The government was of the view that public sector had not generated internal surpluses on a large scale. Because of its inadequate exposure to competition, the public sector was subject to high cost structure. If we want to compete in the world market, the Indian industries should increase the efficiency and it is possible only by privatisation.

5. Disinvestment in public sector units share : In pursuance of Industrial Policy Statement of 1991, the government has carried out various rounds of disinvestment of equity share holdings, realising a total amount of 3 8,721 crores in 1991-92. The government realised 10,000 crores in 2000-01 and 12,000 crores in 2001-02.

6. Wide scope to increase production : Indian industries have good ground for their development and here technical and managerial efficiencies are available, labour is cheap, and natural resources are in plenty and huge domestic market is also available for their products. In this situation economic development is possible by privatisation.

7. Limited Area of public sector : The regulatory framework which acted as a barrier to entry and growth by the entrepreneur was sought to be basically changed by the industrial policy announced on July 24, 1991. The set of activities henceforth reserved for the public sector was now much narrower than before, and there would be no ban on the remaining reserved areas being opened upto the private sector.

8. Private banking : The government has also given permission to establish banks in private sector.

9. Burden of debt: For the development of public sector, planners planned to raise large financial resources by way of foreign aid. A developing country such as India generally finds it difficult to expand its exports; at the same time, it does not like to reduce its imports, lest its rate of growth is reduced. Foreign loans and grants are, therefore, useful and constitute an important source of financing economic growth. The government has incurred substantial additional public debt. Consequently, interest payments accounted for over 50 percent of the non-planned revenue expenditure of the Central Government.

Concept Globalization Liberalisation Privatisation

EFFORTS OF PRIVATISATION IN INDIA

Following measures have been adopted for the privatisation in Indian economy :

1 Disinvestment in PSUs equity : 5 to 20 percent shares of public sector units will be sold to the financial institutions, public, workers and mutual funds. This disinvestment could hardly exercise any control on PSUS.

2. Policies related to sick industries: To tackle the problem of industrial sickness, the government has established the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act of 1985. If the BIFR comes to the conclusion the company has become sick, it can either give reasonable time to the concerned company to make its net worth positive or it can disolve the company.

3. Insurance companies in private sector: Now Indian market is open for private insurance companies. At present, at least thirteen private insurance companies are doing their business in India.

4. Disinvestment of public sector enterprise : The ownership of the public enterprise is diluted by selling 26 percent of the shares of the public sector enterprises for the ownership of the private sector.

5. Reorganisation of the public sector: Public sector reorganisation is companies modernisation and privatisation

6. Partnership of private sector : The government has allowed private sector investment in certain sectors. The important areas opened for the private investment include fuel, electricity, transportation, communication and security.

7. Reducing the scope of public sector : The role of the public sector which was sought to be enlarged in the Industrial Policy of 1956 would be limited to only 4 industries and more and more areas would be opened for private sector.

8. Memorandum of understanding : The government of India has entered into memorandum of understanding (MOU) with a number of PSUs. The main aim of MOU is to bring about a balance between autonomy and accountability.

ARGUMENTS OR ADVANTAGES IN FAVOUR OF PRIVATISATION

Privatization is being favored on account of following grounds:

1 The private sector has given sufficient scope to produce intermediate goods and machines also. India has become self-sufficient in many consumer goods.

2. The private sector has become so capable as to help other third world countries in their economic development.

3. Private sector has developed both technological and managerial capabilities and is in better position to undertake investments in the area hitherto reserved for the public sector.

4. It enables the government to concentrate more on the essential State functions.

5. The corporate industrial units are owned by the shareholders and managed by the professional managers. They are not always interested in maximising profits for the shareholds but have other corporate objectives as well such as expansion and consolidation, social consciousness and social welfare etc.

6 Privatisation promotes both economic efficiency and technical efficiency introducing profit oriented decision making process.

7. New capital and profits are considered to be the main source of new jobs. Thus, if the private sector starts earning rich profits, it will help to generate more employment opportunities in the country.

8. Privatisation may help in reviving sick units which have become a liability on the public sector.

9. Privatisation helps to accelerate the pace of economic development as it attracts more resources from the private sector for development purposes.

10. Self-interest, work and reward are directly related which improves managerial efficiency.

11. The government has appreciated the dynamism of the profit motive and personal initiatives of the private sector and now the private sector can introduce new processes, new varieties, new goods etc. and now it can revolutionise the entire mode of production.

12. Private sector firms are subject to capital market disciplines and scruitiny by financial experts. In fact, the ability to raise funds in the capital market crucially depends on performance which is not so in the case of public enterprises.

Concept Globalization Liberalisation Privatisation

DEMERITS OF PRIVATISATION

Demerits of privatisation are as follows:

1 It is the general pattern of capitalist development that, as the economy progresses, the monopoly organisations are, strengthened and concentration of wealth and economic power comes in a few hands.

2. The operation of the private sector has brought out many shortcomings such as the failure to mobilise adequate funds, it is also dependent on public finance institutions to start new enterprises etc.

3. In their lust for profits, most private enterprises have adopted undesirable practices which have gone against the consumers on the one side and thwarted the growth of medium and small-scale industrial units on the other.

4. Private sector units have been subject to frequent industrial disputes and industrial sickness.

5. Sale of a PSU to a private enterprise can only result in the substitution of public monopoly by a private monopoly. Monopolistic exploitation by efficient private owners replaces the inefficiencies of public ownership

6. One of the important arguments in favour of privatization of PSUs is the belief that this would improve their performance. However, some critics have pointed out that there is no positive relationship between ownership and performance. According to Pranab Bardhan and John E. Roemer, “Our claim is that competitive markets are necessary to achieve an efficient and vigorous economy, but that full scale private ownership is not necessary for successful operation of competition and markets.”

7. In a democratic set up, it would not be possible to carry out privatisation in blatant disregard of the interests of workers.

8. It is fraudulent practice on the part of the State to use book value of net assets.

9. Another major resistance against privatisation is the facile manner in which these proposals indicate retrenchment of workers, some estimates reveal, that there is 25-30 percent over-staffing in public sector enterprises. So the first axe of privatisation must fall on redundant workers.

DIFFICULTIES OR CRITICISM OF PRIVATISATION

Main difficulties of privatisation in India are as follows:

1 Fear of unemployment : One of the genuine fears of labour is that privatisation experiments are testimony to the fact that this indeed does happen. The Government of India has been repeatedly harping on the tune that as a result of privatisation there has only been a marginal retrenchment of labour. However, the fact of the matter is that there is a strong pressure from the corporate sector to reform labour laws to enable it to hire and fire workers as it wishes and indications are that the government is falling in line. The fear of retrenchment and consequent unemployment is all the more as there is no safety net scheme for labour worth the name. In any case, VRS is no solution of unemployment. According to Joseph Stiglitz, “Moving people for low productivity jobs in State enterprises leads to unemployment, does not increase a country’s income and it certainly does not increase the welfare of the workers.” The above danger is more serious in those cases where a PSU is sold to a foreign company as the latter will be more interested in maximising the stock market value for its shareholders rather than worrying about the interest of local labour.

2. Emphasis on non-priority industries: An important criticism of the privatisation is that it has helped in the expansion of consumer goods industries having low priority. These goods were meant to satisfy the consumption needs of elitist groups but they yield quick profits. In a sense, not only the long-term requirements of the economy have been ignored but the economic development of the country in the socially desirable channels has been hampered.

3. Threat from foreign competition : The process of globalisation and integration of the economy with the world economy has led to an unequal competition, a competition between giant MNCs and dwarf Indian enterprises. In the early euphoria of liberalisation, the private sector welcomed the measures of the government but it soon came to be realised that opening up the Indian economy to foreign competition is not for only more and cheaper imports and more foreign investment but also to provide opportunities to the MNCs to raid and take over their enterprises.

4. Inefficiency of private sector: Another more serious problem is that the private sector, which is supposed to improve upon the performance of the PSUs, may not come up to the mark. This apprehension arises from the fact that the private sector too has not performed satisfactorily in a large measure. Having lived for long under the umbrella of protection and with a captive domestic market, the private units have little to show in respect of factor of productivity, as shown by a rising input-output ratio. Thus, mere change of ownership will not bring about the much-desired increase in productivity.

Concept Globalization Liberalisation Privatisation

SUGGESTIONS FOR SUCCESS OF PRIVATISATION

In the view of the difficulties mentioned above, it is clear that privatisation in the sense of transferring the ownership of PSUs to the private sector will have to be to a limited extent. The following measures are suggested for the privatisation in India :

1 Foreign capital investment should be mainly accepted for export promotions. Higher technology and infrastructural facilities should be promoted. Establishment of industries related to luxury goods should be discouraged.

2. There should be uniform administrative control and tax system through out the country.

3. Privatization should be promoted to reduce regional imbalance.

4. There should be a comprehensive strategy for the privatisation for the different categories of public enterprises.

5. Privatisation of only those units should be undertaken which will increase officiency and productivity and reduce the burden on budget resources and lead to import of technology without affecting national interests.

6. The proceeds of disinvestment should not be used to bridge the budget deficit but instead should be placed in separate fund to be used for returning public debts, restructuring PSUs, developing the social infrastructure and voluntary retirement schemes.

7. Once a PSU is privatised, the government is deprived of the future yields from this enterprise. This could be a large long-term loss in the case of the profit generating PSUs. This point should be considered for the government’s disinvestment programme.

8. The process of privatisation has to be implemented with vigour and process should be monitored very well.

9. In order to conduct the privatisation smoothly, it is necessary to educate the public about the wisdom of these measures.

By the way of conclusion, we can say that the process of privatisation may be adopted ifit promotes economic and technological efficiency. Quite a significant section of our society is opposed to privatisation for a variety of reasons. Dr. V.V. Ramanadhan places the issue in a very succinct manner, “In the view of the historical background of public enterprise in India, it is in conceivable that privatisation in this very country will be accepted by the society as an end in itself, since there is no consensus in favour of market solutions and property rights, nor are these considered as prime movers for much needed social and economic change. The real issues centres on the alleviation of poverty and the upgrading of technology in a highly differentiated society of continental dimensions. This implies that privatisation will have to be viewed essentially as the best possible means of achieving pre-determined ends and ensuring that it does not distort the parameters of such ends.”

Concept Globalization Liberalisation Privatisation

EXERCISE QUESTIONS

Long Answer Questions

1 What is meant by globalisation? What are its objectives ? Analyse its merits and demerits.

2. Define globalisation and explain its impact on the Indian economy.

3. Write an analytical note on globalisation.

4. What is globalisation ? Describe the arguments in favour and against of globalisation.

5. What is meant by liberalisation? What are its objectives? Is liberalisation good in interest of Indian economy? Analyse.

6. Define liberalisation and explain its merits and demerits.

7. Give an analytical evaluation of liberalisation policy of India.

8. What is privatisation ? Describe its main features and factors affecting privatisation.

9. What is meant by privatisation? What are its main characteristics ? Also describe its modern tendencies.

10. Define privatisation. What is its relevance of globalisation in the context economy? Give the argument in favour of and against privatisation.

11. What do you understand by privatisation ? Describe its scope and also explain the measures adopted for privatisation.

Concept Globalization Liberalisation Privatisation

Short Answer Questions

1 What do you understand by liberalisation ?

2. What is meant by globalisation ? Explain.

3. Give two definitions of globalisation.

4. State the importance of globalisation.

5. What are the main features of globalisation ?

6. Write down any three advantages of globalisation.

7. Explain any three impacts of globalisation.

8. What measures have been adopted in Indian economy for the globalisation ?

9. Write down the chief characteristics of liberalisation.

10. What are the main objectives of liberalisation ?

11. Describe any four advantages of liberalisation.

12. Explain any four demerits of liberalisation.

13. What is meant by privatisation ?

14. Give any two definitions of privatisation.

15. Describe the scope of privatisation.

16. Explain the suggestions for the success of privatisation.

17. State any two difficulties of privatisation.

18. Write down any two merits of privatisation.

19. Explain any three demerits of privatisation.

20. Write down any two factors affecting privatisation.

Concept Globalization Liberalisation Privatisation

Objective Questions

Select the Correct Alternatives :

1 When the restrictions imposed by the government are reduced, it is known as:

(a) Globalisation

(b) Privatisation

(c) Liberalisation

(d) Disinvestment.

2. When domestic economy is integrated with the global economy, it is known as:

(a) Globalisation

(b) Privatisation

(c) Liberalisation

(d) None of these.

3. How many industries are reserved for the public sector in the Indian economy?

(a) 6

(b) 2

(c) 18

(d) 17.

4. The process by which the government transfers the capital of public sector units to private ownership, is known as:

(a) Disinvestment

(b) Globalisation

(c) Liberalisation

(d) Privatisation.

5. Currently for the establishment of how many industries license is compulsory?

(a) 6

(b) 3

(c) 5

(d) 15.

6. The new economic policy……………regional imbalance

(a) decreases

(b) Increases

(c) reduces

(d) none of these.

7. Automatic approval to invest in 34 high priority industries in:

(a) 50%

(b) 51%

(c) 60%

(d) 45%.

8. Under new economic policy the percentage of foreign investment is:

(a) 46%

(b) 40%

(c) 30%

(d) 52%.

9. New industrial policy of India is announced in the year:

(a) 1997

(b) 1991

(c) 1990

(d) 1992.

10. When the government sells its share in PSU to a strategic partner, it is known as:

(a) Disinvestment

(b) Liberalisation

(c) Globalisation

(d) Privatisation.

(Ans. 1. (c), 2. (a), 3. (b), 4. (d), 5. (c), 6. (b), 7. (b), 8. (a), 9. (b), 10. (a).] (c) 18

Concept Globalization Liberalisation Privatisation

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